Helping Us Understand Expatriate Taxes

Expat Tax Expert Terry Clune

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Expatriate taxes can be very confusing. People who live and work outside of their home country have unique and sometimes complex tax filing obligations. We reached out to the expat tax professionals at Taxback.com to inform you (and ourselves) about our overseas tax filing obligations.

Twelve years ago Terry Clune was just another Irish college student working on a building site in Germany. Like thousands of others he was earning his college fees working 12-hour days. On paper it looked as though he was earning big money. But the German tax office was hammering his take - home pay.

"We were paying out 50% of our earnings in tax and pensions and so on," Clune recalled. "I decided to work out the tax and claim it back."

He did the same for this friends who reclaimed an average of 1000 Irish pounds a head. Today Clune is managing director of the Taxback Group which employs 600 people in 23 offices worldwide. Last year Taxback processed 130,000 income tax returns, 20,000 Vat claims and 30,000 Visas worldwide. The company processes tax returns for citizens from the U.S., U.K., Canada, Australia, Ireland, New Zealand, Germany, Holland, Japan, Norway and a total of 16 countries.

For US Expats - that's citizens, residents and green card holders who are working overseas – you are always required to file a US income tax return and declare your world income, even if you’re not earning anything in the US. You need to file your US expat tax return or file for a 2-month extension by the usual April 15th deadline to avoid penalties and interest.

Living outside the US means you may qualify for special laws and regulations which may allow for the partial or complete offset of your US income tax liability. Your income type and sources, the taxes you have paid abroad and your actual physical presence outside the USA will all be factors in this.

As well as your US expat tax return you will also have to file a tax return in the foreign country where you are working and earning – according to the tax laws of that country.

For UK and Australian expats – similar rules as for the US expat tax refunds apply. The difference originates in the fact that the tax year in the UK finishes in April so the period during which you are allowed to file your UK expat tax refund is also different. The extension during which you can claim a UK expat tax refund is between the 5th of April and the 31st of October. For Australia this period is also different as the tax year there ends on 30th of June and you can apply for your expat tax return after that date. Contact the tax experts at Taxback.com to receive detailed advice and to submit your refund application by email here.

Filing a tax return in a foreign country can be confusing and complicated so it is a good idea to use a professional tax service provider to ensure your tax return is legal and that you can claim any available refunds or allowances.

Taxback.com is an international tax return specialist and can minimize your income tax liability and help you take advantage of laws and regulations which allow for the partial or complete offset of your income tax liability.

The company has 13 years experience in filing income tax returns in 16 different countries so can ensure your US tax return and foreign tax return obligations are met.

To get more familiar with Taxback.com's history, establishment and development to the position of the world’s market leader please visit the Taxback Reading Room to see the articles they are contributing regarding your expat taxes. Start by reading Terry Clune's full story. It's amazing and we're excited to share it with you.

Taxback.com also has these local websites in local languages:

Taxback Peru    Taxback Ecuador    Taxback Colombia    Taxback Chile    Taxback Brazil
Taxback Australia     Taxback China     Taxback Poland     Taxback Romania



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