Are you an American citizen that has chosen to live abroad?
If so, you may need to file taxes with the IRS even though you’re residing outside of the United States. You may also need to file taxes in your country of residence; and other countries in which you hold citizenship or residency.
The filing of multiple tax returns can be incredibly complicated and time-consuming. But with our help, we can make it easy on you! Our team of highly trained professionals can handle all of your tax returns quickly and accurately. There’s no need to file multiple tax returns anymore when there’s an easier way!
Tax Returns in the United States
In the United States, you must file an individual income tax return if you earned income during the year. The IRS uses this information to calculate how much tax you owe. You can file your return electronically or by mail. If you choose to file by mail, you will need to use Form 1040. You can get this form from the IRS website or by request from a US accountant.
There are a few things to keep in mind when filing a business tax return in the United States. First, you will need to file a separate return for your business entity. Second, you will need to file your return by the deadline, which is usually April 15th. Third, you will need to include all of your business income and expenses on your return. Fourth, you may be required to pay estimated taxes if you expect to owe more than $1,000 in taxes for the year.
Tax Returns for US Expats
When determining whether or not you need to pay taxes as an expat in Portugal, the answer is typically yes. For you to be considered a resident of Portugal, you must then pay taxes on the income that you earn – anywhere. If you are not considered to be a resident of Portugal, then you will only need to pay taxes on the income that you earned from sources in Portugal.
Additionally, there is a tax treaty in place between the US and Portugal to ensure that you won’t be subject to double taxation or any other risky situations. There are credits which are quite helpful when determining your overall tax liability, if you qualify.
If you’re living in Portugal, you must pay taxes on worldwide income while non-residents will only pay taxes on Portugal-sourced income. You are a resident of Portugal if you spend 183 days or more within 12 months, or if you maintain an abode. An abode can be described as one’s home, habitation, residence, domicile, or place of dwelling. Abode does not have the same meaning as main office for the purposes of taxation.
Since you are a US citizen, you will still be required to file a US tax return each year. Luckily, the US has instituted several deductions and exclusions to reduce your US tax liability.
Getting Help with Filing
Fortunately for you, RHJ Accountants has teamed up with an expert accountant, from the United States, and we are prepared to assist you with your tax filing requirements, whether you live in the US or Portugal – perfect solution for US expats!
Download our US services package guide to learn more about all the services and packages we offer, including the fees involved.
How RHJ Accountants Can Help
We recognise more than ever that individuals and businesses from the UK and other countries may be globally mobile. We aim to make you aware of the tax-efficient opportunities, available tax relief and structure finances for life at home and abroad.
Our international team of specialists operate from offices in the UK and Portugal. We work together synergistically to provide tax efficient solutions to our clients to help them grow their business whilst keeping tax liabilities to a minimum – perfect solution for US expats!