Greenback Expat Tax Services Alerts US Expats to Track Summer Travel
New York, NY (PRWEB) July 13, 2013 -- For US expats planning to visit loved ones in the States during the summer months, travel plans mean much more than deciding what to pack. Close attention must be paid to the amount of time spent traveling to ensure the guidelines of the Physical Presence test are met.
“US expats have specific requirements regarding the amount of time they are outside of the US in order to utilize many of the tax opportunities available on their US expat taxes,” says Greenback Expat Tax Services President David McKeegan. “When making summer travel choices, expats must take into account how much time they’ve lived and worked outside of the United States during the tax year.”
There are two key residency tests used in relation to expat status: the Physical Presence Test and the Bona Fide Residence Test. American expats should ensure they meet the requirements of at least one when filing for their expatriate tax returns. Meeting the requirements of either of these two tests enables US expats to qualify for exclusions on their US expat taxes. Many Americans living abroad, particularly first year expats, contractors and those outside of the US temporarily only qualify for the Physical Presence test.
According to Mr. McKeegan, “Both tests were designed to assist Americans living abroad to avoid double taxation,” said Mr. McKeegan. “The requirements of each test are very specific,” he said, “US expats must be familiar with the parameters of both when planning any travel. Failing to meet the requirements would prevent an individual from utilizing valuable tax opportunities.”
The Physical Presence Test offers a tax break to Americans who are outside the country for eleven months or more. Individuals must be inside a foreign country for a minimum of 330 days within a 365-day period. Expats meeting the requirements for the Physical Presence Test are often on assignment through their employers, contractors on assignment overseas, location independent professionals, or entrepreneurs working overseas, although that list is not exclusive. The Bona Fide Residence Test is applies to US expats who plan to reside overseas for an indefinite amount of time. To qualify, the US expat must have an established residence and reside in foreign residence for a full calendar year with intentions of staying inside that country indefinitely.
“The requirements for both the Physical Presence and Bona Fide Residence Tests are not complicated,” said Mr. McKeegan. “Nevertheless, expats must be familiar with them to ensure eligibility for allowances such as the Foreign Earned Income Exclusion, Foreign Tax Credit, and the Foreign Housing Deduction. Qualifying through either test could potentially save US expats thousands of dollars in their tax obligations.”
More About Greenback Expat Tax Services
For more information about Greenback Expat Tax Services or other US expat tax issues, please email Greenback Expat Tax Services at info(at)greenbacktaxservices(dot)com. You can also visit us at http://www.greenbacktaxservices.com.
Greenback Expat Tax Services specializes in the preparation of US expat taxes for Americans living abroad. Greenback offers straightforward pricing, a simple, hassle-free process, and CPAs and EAs who have extensive experience in the field of expat tax preparation. For more information, please visit http://www.greenbacktaxservices.com.
Danielle Buglino, Greenback Expat Tax Services, http://www.greenbacktaxservices.com, 1-888-362-5032, [email protected]
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