Get your expat taxes done wherever you are in the world starting at $399

For many US citizens living abroad, they must stay compliant with their US expat taxes. If you earn a living in Hong Kong, your earnings here are liable for US tax obligations; else you may have to face penalties from the IRS.

To help you how to file US income tax return online, it is essential American expat tax services in Hong Kong.

Here are the things to consider that will help the Non-Residents US for filing their federal tax returns-

Do Americans living abroad have to pay taxes: Filing US tax returns is imperative for US citizens or green card holders when living abroad. In other words, you file a US tax return if you are a US citizen or green card holder and make over the general income threshold. If you earn a certain income and are a green card holder or US citizen, you have to file a US tax return as the US is one of only two countries where the taxes are based on citizenship. This means it does not matter where you reside; you are legally a US citizen and have to file a US expat tax return. 

1. Most Taxpayers Americans living abroad do not owe American taxes: US citizens living in Hong Kong need to file a yearly tax return even if they live abroad; US expats do not usually end up paying taxes. This is because many mechanisms prevent US expats from being double taxed on foreign-earned income. In most situations, US expats can offset foreign earned income with – Foreign tax credit, foreign earned income exclusion and foreign housing exclusion. Good tax help for expats in Hong Kong will guide you to avoid double taxation.

2. Expats must file American state taxes: If you are an American citizen living abroad, you must file state taxes. Living in Hong Kong does not automatically exclude you from paying state taxes. It depends on the state you lived in before moving abroad. It is recommended that you consult an excellent US expat taxes services in Hong Kong to ensure you stay compliant with your US state taxes.

3. US expat taxes deadlines and penalties: You must know your expat taxes deadlines. Understanding your US expat taxes deadlines and the related penalties that come with the non-compliance will be the key to avoiding fines, fees, and unpleasant surprises from the IRS.

4. Penalties and fines: You can lose your US passport and have monetary fines if you are not compliant with your US expat taxes. You can also face fines and penalties from the IRS if you avoid expat taxes. The best way to avoid the fines and penalties is to file with the best US expat taxes services in Hong Kong that offers 100% accurate services.

5. FBAR extension to extend your American expat tax deadline: The US expats living abroad can apply for a tax and FBAR extension to extend your US expat tax deadline to October. You need to have an extension to file your US tax returns when living abroad, professional tax help for expats in Hong Kong will help you file Form 4868 to extend your deadline to October, and the deadline for requesting an extension is 15th June.

6. US expat tax treaties, Foreign tax credit, Foreign earned income exclusion help prevent US expats from being double taxed: US tax its citizen on the basis of their citizenship, in a sense that every American expats staying abroad are required to file their expat taxes. However, the IRS provides a variety of mechanisms to prevent Americans living in Hong Kong from being double taxed – Once by the United States of America and once by the Hong Kong tax mechanism. These aids are

7. Tax treaties: To do away with the double taxation on income, American taxes for expats are offset by income tax treaties with more than 70 countries. However, the US has no tax treaty with Hong Kong.

8. The Foreign earned income exclusion is the most common aid to do away with double taxation.

9. Foreign tax credit: The FTC is used to claim a dollar-for-dollar credit on the foreign taxes paid on the income from your expat job. If you are US expat in Hong Kong and you have to pay taxes or acquire a foreign tax liability, you may qualify to claim Foreign tax credit.

10. Can get caught up on the multiple years of expat taxes if you have never filed: Most American expats living abroad overlook their expat tax obligations. Many are not even aware that they have to file their expat taxes. It is therefore essential to hire an excellent American expat tax services help in Hong Kong to help you file your expat tax returns; else, you can get caught up on multiple years of American expat taxes with the streamlined filing compliance procedures.