Higher Taxes? Know Biden’s Plate for Expats in the Upcoming Budget
With the tax return date approaching closer, every US citizen and expats are becoming more active than ever with their finances. By law, every US taxpayer should submit their due taxes within 18th April 2022 (which further gets a 2-month automatic extension till June 15th). With new policies being incorporated lately, every expat should have a clear idea of what Mr Joe Biden has on the plate for them. For a better understanding, contact an Expats Tax Consultants in Toronto.
How Expats Tax Is Defined and Calculated?
Before we delve deep into the process of filing expats taxes under the new policy, let us clarify our concept of expats tax. According to the American tax system, U.S. citizens who live outside the U.S. territory or are resident aliens must submit their annual tax on the basis of their accumulated international income. Expats must club their U.S. income with the overseas income together to figure out the gross payable tax amount. This could be a perplexing task for those who are not particularly aware of the latest policies and a slight error in calculation could lead to dire consequences. Hence, you should better leave the matter to the expert international tax consultancy service in Toronto.
We are here to facilitate you with the finest Personal Tax Consultancy Service in Toronto to make things a lot smoother for you.
How to File an Expats Tax Return?
As per the latest update from the IRS, you have two ways to file the annual tax. You can either choose the manual method of sending a cheque or a money order to the IRS office or you can simply e-file the tax through verified software.
Filing tax electronically is much easier and quicker with Free File. If your annual income falls within the Adjusted Gross Income, you can file your annual tax via Free File. There is a third party software available as well for the expats whose annual income is greater than the Adjusted Gross Income.
It goes without saying that you need to have a Social Security Number (SSN) to file taxes. In case your spouse does not have an SSN or is not eligible for SSN, you must obtain an Individual Taxpayer Identification Number (ITIN) by filing Form W-7 and other paperwork.
Most importantly, keep your Social Security Number (SSN) handy during your tax returns. If your spouse does not have an SSN and/ or is ineligible for SSN, you should acquire an Individual Taxpayer Identification Number (ITIN) by filing Form W-7.
We will always recommend you to get in touch with the US Tax consultants in Toronto to get your job done without bothering much.
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