Expat Services
Expat Clients working overseas in South America, the Middle East, Central Asia, Europe, the Balkans, and everywhere in between. We are committed to providing the highest level of service to our Expat Clients. A sampling of the value-added services we provide follows:
- Amended Returns
- Tax organizers to help make filing as convenient as possible for taxpayers working away from home
- Simple and easy communications - contact us by phone, email, fax, or traditional mail
- Experienced Expat CPA review and preparation of all returns - we do not outsource any of our work
- Extensions and special form filing
- Federal and State Returns prepared on a fixed-fee level - no surprise costs to you for special forms or worksheets
- IRS representation and correspondence
- Lobbying Congress to protect and preserve the Foreign Earned Income Exclusion
- Regular informative newsletter for Expats
- Personal on-site visits if permissible by employer
- Prior-year preparation of all returns
- Review of previously prepared returns for new clients
- Year-round planning and support
Foreign Earned Income Exclusion
As an Expat working in a foreign country, you may be eligible to exclude up to a certain amount of your foreign earned income from your taxable income. You may also be eligible to deduct certain qualified housing costs. A foreign country is any country that is not the United States, or a territory or possession of the United States. The foreign earned income exclusion is not available to Expats working in a restricted country, unless the company you work for has a license under the Office of Foreign Asset Control to do so. To receive the exclusion of income, an Expat must qualify for the physical presence test or bona fide residence test.
Physical Presence Test
The physical presence test requires a taxpayer to be overseas for a full 330 days during a 12-month period. This can be any 12-month period that is most beneficial to the taxpayer. A full day begins at midnight and runs 24 hours. The 12-month period can slide backwards or forwards as long as the Expat meets the 330-day test.
Bona Fide Residence Test
Expats who work in foreign countries may be eligible for the bona fide residence test. To qualify, you must be a bona fide resident of a foreign country for a full calendar year and expect to be overseas indefinitely. When in doubt, an Expat should plan to use the physical presence test until a bona fide residence determination can be made. The presence test is especially important in case of the calendar year requirement not being met. In addition, to qualify for this test you must never declare yourself a nonresident of the foreign country; you must also be subject to that country's income tax, unless the country does not have a personal income tax (such as UAE, Kuwait, Saudi Arabia, etc.).
Combat Zone
There is no IRS benefit for Expats working in a combat zone. This is reserved for the US Military. In some circumstances, additional time to file may be granted but there is not a combat zone tax exclusion.
d but there is not a combat zone tax exclusion.
