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
ACCOUNTING & BOOKKEEPING SERVICES IN CHARLOTTE | ED LLOYD CPA
GET THE BEST TAX PLANNING AT ED LLOYD
Ed Lloyd and Associates PLLC believe that preparing for the tax payment is the final step in a company’s annual work and they help the companies in this crucial endeavor by helping them to minimize the money paid on taxes and maximizing the gain and benefits of the organization.
Ed Lloyd & Associates PLLC provide a wide range of tax services to their clients which include:
They prepare a strategic tax plan that aims at reducing the amount that a client needs to pay as tax. They help their clients to implement these plans and make sure that the clients claim all the deductions that they are eligible for. They help the clients to do so by:
- Helping the client to organize the business such that there is provision for the protection of assets, reduction of taxes and reduction of the risks in the audit.
- Documenting all the deductions that a client is eligible for.
- Explaining the correct benefit plans for the client and his employees.
- Educating the client about the tax deductions that he is eligible for under the tax code of the country.
Ed Lloyd & Associates, PLLC provide their clients with a variety of accounting services to make sure that there is a high level of accuracy in their records. They help their clients to prepare the projections necessary for taxation which ensures that the tax payments that have been estimated for the client are correct. Accounting services include:
- Financial Statements on a monthly and quarterly basis
- Assistance in auditing, compiling and managing financial statements
- Developing an accounting system
- Assistance in bookkeeping and training
Financial Performance Review –
Another important service that is provided by Ed Lloyd & Associates is preparing a report known as the financial performance review which helps the clients to understand the way their business has performed and about its progress.
Ed Lloyd & Associates PLLC also help their clients, be it business organizations or individuals, in preparing tax return documents.
Ed Lloyd & Associates PLLC provide very efficient tax services to their clients.
Do you have young children and are looking for some financial tips? Read – Financial and Legal Tips by Ed Lloyd & Associates PLLC for Parents of Young Children
BENEFITS OF TAKING HELP OF FINANCIAL SERVICES
GET THE BEST FINANCIAL ADVICE WITH ED LLOYD & ASSOCIATES PLLC