What Can You Expect From a Good Accounting Service Provider?
Whether you are looking for a new accounting service provider or you are considering switching to a different provider, you want to make sure that you are getting exactly what you want. This includes keeping up with the ever changing regulatory requirements, keeping track of tax obligations, and finding a firm that has the skills and experience to meet your needs. Keeping up with regulatory changes If you want to avoid penalties for your business, it's important to know the regulations that apply to your industry. Keeping up with these changes is not easy, but it is imperative to keep your organization compliant. A good accounting service provider can help you with this. The Federal Government has more than 5,000 rules to keep track of each year. There are also numerous state, municipal and local regulations. In addition to these rules, you will need to implement policies and procedures to keep your business in compliance. It is important to be aware of these requirements in order to avoid fines, lawsuits, penalties and other negative consequences. Keeping track of tax obligations Keeping track of tax obligations is a very important part of running a business. Whether you're keeping track of tax
Demystifying the 1040 US-Portugal Tax Filing Process
When I got off the webinar with Derren Joseph about 1040 US Portugal challenges , I felt I need to write. Here we go. Portugal offers exquisite seafood cuisine and stunning 16th to 19th-century architecture that draws US expats, making it a desirable location to settle. However, tax matters may become complicated as you need to pay both US and Portugal income tax obligations. Dividends paid to non-resident shareholders are subject to withholding tax at 20% or the treaty rate, while interest expenses can be deducted on an accruals basis. Streamlined Filing Procedure As Americans prepare to move to Portugal, they must remember that US tax rules still apply and consult a tax professional in order to assess any filing requirements or treaty benefits applicable in accordance with US tax treaty obligations. The United States and Portugal have signed a Tax Treaty which can protect American expats living abroad from double taxation. This treaty covers various aspects of taxation such as income and social security taxes as well as how to determine which country can tax particular income sources. General rule dictates that US citizens living overseas are required to file federal income tax returns each year they reside abroad,
What You Need to Know About US Taxation for Expats
If you are an American expat, understanding your US tax obligations may be more complicated than you think. Luckily, the IRS has exclusions, deductions and credits in place to lower your obligation or completely eliminate it. However, there are some key dates to remember when filing taxes as an expat. Understanding these and the penalties that come with non-compliance can help you avoid fines, fees and nasty surprises from the IRS. State Taxes Whether you need to file state taxes while living abroad depends on your individual circumstances. Each state has its own rules and filing requirements, so it’s important to consult a tax expert who specializes in expat tax issues. State taxes are a separate issue from federal income taxes for expats. Expats need to file a state income tax return in addition to their federal tax return when they’re earning or receiving taxable income from sources within a particular state. The rules vary by state, but generally, only income that is sourced from the state or is generated within the state is considered taxable. Some states do not require expats to pay taxes on taxable income derived from sources outside the state, but
Understanding the American Tax System for Expats in the UAE
Here's a summary of my recent conversation with Derren, the US tax preparer in UAE specializing in US tax returns . As an American living in the United Arab Emirates (UAE), it's essential to understand the tax system and your obligations. The UAE operates under a tax-free system, meaning that there is no personal income tax imposed on residents. However, as an American citizen, you are still required to file taxes in the United States, regardless of where you reside. This article will provide an overview of the American tax system for expats in the UAE, helping you to understand your obligations and avoid potential penalties. American Tax Obligations for Expats As an American citizen, you are required to file taxes with the Internal Revenue Service (IRS) each year, regardless of where you reside. This includes those living and working abroad. The requirement to file taxes remains the same, whether you are earning income in the UAE or elsewhere. In addition to filing an annual tax return, expats may also be required to file an FBAR (Foreign Bank Account Report) if they have more than $10,000 in foreign bank accounts. It's important to note that the
The Tax Implications of Starting a Side Hustle
Starting a side hustle or a small business can be an exciting and fulfilling way to earn extra income, but it's important to understand the tax implications of this type of work. Here's a breakdown of some of the key considerations for side hustles and taxes: Self-Employment Tax: If you are self-employed, you are responsible for paying self-employment tax, which includes both Social Security and Medicare taxes. The self-employment tax rate is currently 15.3%. Business Expenses: You can deduct certain business expenses from your income, such as the cost of goods sold, supplies, and equipment. You can also deduct expenses related to your home office if you use it exclusively and regularly for your side hustle. Record Keeping: It is important to keep accurate records of all income and expenses related to your side hustle. You will need these records to prepare your tax return and to claim deductions. Estimated Taxes: If you expect to owe more than $1,000 in taxes on your side hustle income, you will need to make estimated tax payments. These payments are due quarterly and can help you avoid underpayment penalties.