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Expat Tax Blog

Sep 26

Tax Credits for Education Expenses – The American Opportunity Credit (AOTC)

by julie

content_09052016This article will explain the American Opportunity Credit, rules for who is eligible for the credit, what expenses qualify, the value of the credit, limitations on claiming the credit, and how the credit is claimed on your Form 1040 (including related tax schedules).

Original Story at TFE.

Sep 26

Tax Credits for Education Expenses – The Lifetime Learning Credit (LTC)

by julie

content_09052016This article will explain the Lifetime Learning Credit, rules for who is eligible for the credit, what expenses qualify, the value of the credit, limitations on claiming the credit, and how the credit is claimed on your Form 1040 (including related tax schedules).

Whole story at TFE.

Sep 25

Understanding Effects of Superannuation on your US Taxes in Australia

by julie

As an American living in the Land Down Under, you likely have many questions about “supa” (as it is commonly 09252016referred to by the Australians), or superannuation as it is formally known. Adding to the complexity of your tax filing requirements, you might be considered to be a “highly compensated employee”, which potentially affects your superannuation as well as your United States expat filing requirements. This article will give you more details about how both the United States and Australia tax superannuation, and how being a highly compensated employee affects it.

Whole story at TFE.

Sep 24

IRS Tax Payments – How Much to Pay, When to Send, Where to Send?

by julie

09202016-1The ultimate goal of having your taxes prepared is finding out whether you owe anything to the IRS (or perhaps, vice-versa). Lucky taxpayers who owe no tax do not have worry about payment logistics. For those who do owe tax, it is paramount to send the right amount to the right address and at the prescribed time. Otherwise penalties will accrue and increase this (already unpleasant) item of expense.

A copy of tax return furnished to you by your tax preparer will include different types of payment due slips. It is important to know the difference and to know what each voucher covers.

This article will cover Payment Vouchers, Estimated Tax Payments, and Installment Agreements.

Whole story at TFE.

Sep 22

US – Israeli Dual Nationals Lose FATCA Challenge In Israel

by julie

israel-usaAn Israeli Supreme Court panel has thrown out a challenge to a tax information-sharing agreement with the U.S. and removed a temporary block on FATCA’s implementation, rejecting arguments that the agreement violates the rights of Israelis.

The three-justice panel issued a brief ruling rejecting the challenge, with a more detailed opinion to follow, while also lifting an injunction issued late last month that had barred Israeli officials from implementing the law facilitating the U.S. Foreign Account Tax Compliance Act among Israeli financial institutions. The statute had been contested on concerns that it violates rights to property and privacy, and has inadequate protections for the information sent to the Internal Revenue Service.

In temporarily blocking the pact’s implementation, Israel Supreme Court Justice Hanan Meltzer had in part cited concerns that there was inadequate time between the notification to people affected, U.S. citizens and those holding green cards, in August and the final implementation this month. The case was launched by U.S. citizen and Israeli resident Ritan Schreiber and the group Republicans Overseas Israel, protesting the legality of legislation intended to make Israeli financial institutions share information about accounts of U.S. citizens and green card holders with more than $50,000.

The group launched its suit against the Israeli government in December, claiming violations of rights to privacy, dignity and private property. The complaint raised concerns over the law’s automatic effect and lack of legislative input on implementation decisions.

Israel is not the first country whose government pushed back on FATCA’s requirements, as the Cayman Islands government ordered a delay in reporting dates earlier this summer, starting compliance reporting in August.

The case is Republicans Abroad in Israel v. Government of Israel, case number 8886/15, in the High Court of Israel. The appellate court overturned an earlier injunction against FATCA’s implementation in Israel, on the basis that ‘privacy in modern life is very limited’.