Am I required to file a US Individual Income Tax Return?
The US income tax regulation is defined in the U.S.Code Title 26, Subtitle A, chapter 1 through 6. The Internal Revenue Service acts as the government revenue agent/collector. The IRS enforce the rules and regulations through the collections processes by applying the thousands of pages of Revenue codes. Please do not ask me if I read the code (no I didn’t finish it, but I am still reading the most important parts so I, as an accountant, can provide valuable Expat Tax Return Preparation Services to my clients.
I can tell you that I am required to file income taxes as you are too unless you fall under the exception rules. Even though you are NOT a U.S. citizen or permanent resident (Green Card holder) per the USCIS, you might have income tax filing requirement because of your presence or income earned in the US. Many foreign nationals do have investments in the US either in real property or financial assets, or some other means of sophisticated investments vehicles.
You may also have to file a U.S. income tax even if you are living and/or working outside of the U.S and you have not revoked your U.S. citizenship or Green Card. Uncle Sam wants you to pay tax on some of the taxable income you earned 100% or not in foreign countries. Of course there are many rules that apply, so that you can exclude some income from US taxation and/or take tax credit for taxes paid to foreign governments. Additionally, you may not prepare an income tax return if you do not meet the minimum threshold amount.
To sum up, it is likely that if you are reading this, then you may need to file a U.S income tax return even if you have zero tax liability and meet the income filing threshold for your filing status.
Get in touch with your certified public accountant at Whin Global Expat Tax Services to get your expat tax returns and planning needs taken care.
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