4 Advantages of Hiring an Expat Tax Specialist

Like any taxpayer who needs assistance, expats can turn to tax specialists to help them file correctly. Why put in the effort to work with an expert? Your time is valuable, and more time focused on taxes is less time focused on work or family. That’s precisely where an expert can help! Check out these key advantages of hiring an expat tax specialist to see how they can simplify your life today.

Convenient Communication

A substantial benefit of any tax specialist is one-on-one communication. This is especially helpful for expats because they typically have a lot of questions about transitioning to their new life between two countries. Even after moving overseas, you may have to pay taxes every year, so it can be a confusing transition at first. Thankfully, your expat tax specialist will answer any questions so you can gain more clarity on the subject.

Understanding the Specifics

Not only are expat tax specialists helpful because they can answer your questions, but they also understand the answers to unasked questions. They understand the ins and outs of your tax situation. This knowledge is critical because expat tax filing is not like the average filing process due to the foreign income you’re accounting for.

Opportunities for Deductions

One of the many opportunities you can encounter because of the specialist’s aforementioned knowledge is convenient deductions. For example, you may not have heard of the Foreign Earned Income Exclusion, but you may qualify. The qualifications include approval after completing the Bona Fide Residence Test or the Physical Presence Test.

The Foreign Earned Income Exclusion allows you to exclude more than $100,000 of your earned income. The maximum dollar amount will be $120,000 in 2023, but that number may be different depending on when you’re reading this. Luckily, your expat tax specialist will help you learn the current information so you can file accordingly.

Navigating Relevant Laws

Another key advantage of hiring an expat tax specialist is that they can help you navigate the tax laws in the U.S. and the country you’re moving to. That way, you can avoid making novice mistakes during your first tax year abroad. For example, the Foreign Account Tax Compliance Act (FATCA) puts requirements on individuals and foreign financial institutions.

Know that not all expats are privy to this law. FATCA requires individuals to file Form 8938 to report foreign assets when they surpass certain dollar amounts. This dollar amount can be $50,000, but details like filing status and location can adjust those numbers slightly. Thankfully, you will explore details like this with your expat tax specialist. There is a lot to explore on this subject, but further discussion will require you to work directly with an expert to understand your financials. Reach out to our expat tax specialist at Accutax Business Center if you’re ready to put your tax plan into action.