Foreign Nationals living in the U.S. and U.S. Taxpayers Working Abroad
For most US taxpayers, this area of the Internal Revenue Code will never be used, infact less than 1% of US taxpayers use this side of the Tax Code. However, when Foreign Nationals come to the United States, or US taxpayers (US Citizens, Greencard Holders, and US residents) leave the United States to work in a foreign country, a complexity of tax rules kick-in and may apply to these taxpayers. The ultimate goal is to make sure the correct taxing jurisdiction receives the taxes owed to them by the taxpayer to eliminate double-taxation. Specific exemptions and credits may come into play for US taxpayers when earning income in more than one country, which is why the United States has International Tax Treaties with various different countries to establish which jurisdiction has the first right to a taxpayer's taxable income. The IRS also developed special exemptions, deductions, and credits to alleviate additional tax burdens for people living and working in multiple countries.
Eric Little, CPA possesses the tools necessary to help Foreign Nationals and US Taxpayers working abroad to maintain compliance with the US tax laws while reducing their tax burden as much as possible within the scope of the law.
Experience in these matters include:
Foreign Tax Credits
Tax Equalizations / Hypo Tax
International Tax Treaties
Foreign Assignment Contracts
For more information about this topic, please read IRS Publication 54 - Tax Guide for U.S. Citizens and Resident Aliens Abroad or feel free to contact us.