Best Tax-Saving Ways for Expatriates to Start Filing US Expat Tax of Hong Kong Income

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https://mynewsfit.com/guide-to-us-taxation-of-hong-kong-income/

Being a US expatriate, it’s a responsibility to file your US tax of Hong Kong income before the deadline, no matter where you live and work. Filing expat taxes is a part of being a US citizen or LTR- Long Term Resident/ Green card holder. But what happens when you failed to file Hong Kong US tax for a while now? What is the best way to start filing US expat tax with no error? Before describing the best ways to filing US expat taxes, let’s first understand the tax filing status of a US expat. 

Tax Filing Status of A US Expatriate

If you earn over the filing threshold while living abroad, it is important to file the income to keep the IRS informed that you are still honoring your American responsibility. Basically, complying with US tax rules as an expatriate help you stay in line to avoid tax penalties and consequences. 

Furthermore, the US expat tax filing of Hong Kong earned income is an obligation. But here the big question arises- how you may get to know that you need to file US taxation as an expat? If you are a US citizen living or working in Hong Kong with one of the following scenarios:

  • Earned income through salary, wages, rental properties, tips, commissions, pension funds, capital gains, alimony, royalties, dividends, interest- then you definitely need to file US taxation of Hong Kong income before the deadline to avoid penalties.
  • A portion or all of your Hong Kong earned income was already taxed or will be taxed by a foreign country, then you’ll need to file to avoid double taxation of your earned income.

In addition to filing expat tax, you may also be required to comply with Foreign Bank and Financial Account Reporting as well as Foreign Financial Asset Reporting

How Many Years Of Back Taxes Do US Expats Need To File?

US expats who stand eligible to file US taxation of Hong Kong income might be able to catch up using the IRS Amnesty Program, known as Streamlined Tax Filing Compliance Procedure. In this program, tax compliant required 3 years of back taxes and a consecutive 6 years of back FBAR filings. 

It means to file expat taxes of Hong Kong income, US expatriates living abroad will need to gather their tax documents dating back 3 years. However, it’s never too late to catch up on your back US expat taxes and also it doesn’t cost you a fortune either. For better assistance and tax support, your interest and needs are best served by a US expat tax professional. 

Documents Required To File US taxation as per the Law

To timely file your US expat taxes, you must know your worldwide income, since the US taxes its citizen on the basis of their global income.

Major US Expat Tax Forms Required to File

While living and working in the US, this will be an easy task since all the US companies follow the obligation of issuing standard US tax forms, for instance:

  • W-2 form: Salary and wages
  • 1099 MISC: Non-employee compensation
  • 1099 R: Pension Income
  • SSA-1099: Social Security Benefits

Make sure, you have these documents handy for the timely filing of US expat tax.

Filing your US expat taxes on Hong Kong income has never been easier. Furthermore, moving abroad is hard enough, while having the skilled assistance of US expat tax professionals can serve you the best while making the tax computation much easier. 

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