U.S. Taxes for Expats 101

Carl Mir – Mir Taxes Brian Dunhill

Next week I’m making a special trip to Brussels to spend the day with Carl Mir, of Mir Taxes — a U.S. tax preparer working and residing there who is associated with Dunhill Financial. Carl has the unpleasant task of preparing my U.S. tax return — which is quite complicated thanks to my residence in France with both personal and business interests in both the U.S. and France. He is sure to have a headache from it all at the end of the day, much like I do from keeping it all straight!

This week, Carl issued a newsletter to his subscribers about the Top Ten Most Disregarded Tax Deductions and suggests that if you didn’t take them during the last three years, there is still time to file amended returns to recuperate overpaid taxes.

I do warn you however, as I am sure Carl will — amended returns often lead to tax audits as the IRS may want to know why they gave back money! This is the case for me personally and have now been managing a U.S. audit for almost two years for this very reason. It is time consuming and expensive. Regardless, you don’t want to think that because you’re resident overseas, that your obligations to the U.S. end. “Au contraire,” my friends. Even if you earned not a single penny in the U.S., you must file a tax return.

Carl outlines it in great detail in his newsletter which you may want to read carefully. “U.S. citizens and residents are required by law to declare their total worldwide income as well as assets and bank accounts to the United States each year. There can be severe penalties for unwillful filing by the individuals.”

Foreign bank accounts — those you may hold here in France or elsewhere — are high on the list to report, particularly if they reach a threshold of $10,000 or more at any period during the year. Don’t worry — taxes aren’t due on these accounts, but the authorities do want to know about them. My advice is to report all of them, regardless of how much money is in them.

The reporting requirement as part of FATCA — the Foreign Account Tax Compliance Act — has imposed regulations on foreign banks to report its U.S. clients. It’s for this reason so many foreign banks no longer wish to have us as customers, but those that do, must report them, so don’t hesitate to declare yourself first!

Carl and I are going to thoroughly discuss what deductions I can take, that I haven’t already considered. His list of the Top Ten Most Disregarded Tax Deductions include:

1.    State Sales Tax

2.    Donations to charities made out-of-pocket

3.    Parents paid your student loan interest

4.    Job Hunting expenses

5.    Moving expenses for a new job

6.    Medicare premiums for the self-employed

7.    Child care credit

8.    Refinancing Points

9.    American Opportunity Education Credit

10.   Lifetime Education Credit

Other deductions not listed here, for those of you who own property here, but don’t reside here may include:

    * Mortgage Interest expense
    * French property taxes
    * Property maintenance expenses, if you rent and declare property income
    * Travel expenses to visit your investment property
    * And others
    
Carl can help you expand on this list, as well — you will want to work with a tax preparer who understands your position as a U.S. citizen or resident with interests in France or anywhere outside the U.S.
    
Expats have an automatic extension for filing U.S. taxes of June 15th. And you can request an additional extension to October 15 by filing Form 4868.
 
Regardless, June 30th your FBAR is due with no extensions allowed — the Foreign Bank Accounts Report.
 

If you happen to be in Brussels, Carl is hosting a free American Expat Financial Seminar — “U.S. Taxes for Expats 101” next week on Thursday, May 26th from 6:30 p.m. Here’s where you can get basic information on filing requirements as well as benefits available for U.S. citizens. There will also be a Q&A period after the presentation. Complimentary refreshments will be served. To learn more and register for the event, visit Dunhill Financial Services.
 
To contact Carl Mir, visit Mir Taxes or email [email protected].

A bientôt ,

Adrian Leeds
The Adrian Leeds Group

Respond to Adrian: [email protected]

 

 

 

 

 

P.S. Don’t miss the American Expat Seminar in Paris with Special Guest Brian Dunhill, Sponsored by Dunhill Financial and The Adrian Leeds Group, on July 7, 2016. See our Conference and Events page for more information and please sign up in advance at Dunhill Financial Services.

P.P.S. I’m Getting Down and Dirty in Dallas! Friends in and around Dallas, Texas…we invite you to join me and Candy Evans of Candy’s Dirt for a special Staff Meeting and Open House on June 9th at one of Dallas’ most luxurious homes…where I will be the Guest Speaker! See See our Conference and Events page for more information and please sign up in advance by emailing Jon Anderson: [email protected]