With the world becoming a global village, people are constantly on the move, looking for opportunities to work overseas. For US citizens who live abroad, taxes can be quite a hassle and is definitely an inescapable liability. However, there are many provisions that you can use if you are living abroad. Some tips can help you make those tax decisions easily.
Ed Lloyd & Associates, PLLC shares insights on the subject.
What are Tax Breaks on Foreign Income?
It all depends on how much money you make. You can exclude housing expenses and all your income from taxation in the United States if you meet the guidelines as specified by the Foreign Earned Income Exclusion. The money you earn while working overseas can be deducted from your income that is taxable. This is applicable only up to certain limits after you have been a resident of that country for a specific period. So when you pay taxes to another country, claim Foreign Tax credit. To avoid any kind of mistakes here, make sure you review your return carefully. And do not exclude more income than you are reporting.
Find out about the Medicare Taxes
There are many countries that the United States has agreements with to eliminate taxes on dual Social Security. Find out which these are. These are called totalization agreements. They should be taken into account to make sure you know what you are paying for. These are meant to secure your retirement benefits in case you are torn working between two countries.
What to do in case of Self-Employment?
If you are working independently, you are not required to pay any self-employment taxes to the U.S. government (if only you work with a country sharing a totalization agreement with U.S.). You usually have to apply to Schedule C business income.
At all points, you have to be extremely careful about the paperwork that goes into filing taxes and Ed Lloyd & Associates, PLLC suggests it’s best to hire a full-time professional for this.
To know more about why it may be good to outsource the accounting services, read – Ed Lloyd Associates PLLC tells you why it is important to outsource accounting services
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Passing away of a spouse is the most detrimental event that could happen to any individual and can also set them back by quite a lot, both emotionally and financially. In case that the spouse who passed away was the bread earner of the family or earned the majority of the funds that run the family, bringing the household back to its normal running self can get to be more than a small hick up. Taking the help of legal professionals becomes mandatory in this situation. Here is where Ed Lloyd & Associates PLLC rises to the occasion by extending some of the best tips to control the finances in situations as such.
Filing for Life Insurance Claim
If your spouse had a life insurance to his or her name, it is necessary to let the life insurance company know about the decrease of the policyholder. The next step involves placing the claim for the policy amount. As the person has deceased, you as the spouse are liable to receive the whole amount of the insured policy. Take the help of Ed Lloyd & Associates PLLC for making the insurance claim and receive the sum in the least amount of time.
Contacting the family attorney or other expert attorneys such as from Ed Lloyd CPA can help you get both your finances and properties sorted. If these properties were in the name of the deceased or under joint ownership, the papers deserve a change in the name of the owner.
Lean about the Bank Accounts
Post the death of a spouse it is always necessary to contact the bank. Letting the bank know about the death, calls for some change in the papers and also the ownership of joint accounts and lockers. This is an important step in safeguarding the finances and keeping the future of the family secure, no matter what.
Other than these tips, Ed Lloyd & Associates PLLC also provides other tips that can help you safeguard your finances, in case a spouse passes away.
To know more about Estate planning and the tools required, read - An Introduction to Estate Planning Tools by Ed Lloyd & Associates PLLC
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