Many US Expatriates Paying Unnecessary Taxes And Fines Says Offshore Banking And Company Formation

(EstateNewsWire.com, July 15, 2013 ) Las Vegas, Nevada -- The United States is unique in that it is the only country which requires its citizens and residents to pay US taxes even when they are no longer living in the country anymore. As a result, many US expatriates have to pay taxes twice: once in the US and again in their country of residence. According to Offshore Banking and Company Formation, a website which gives free advice about tax laws, many expats could avoid double taxation simply by filing a form 2555.

Form 2555 is known as the Foreign Earned Income Exclusion. It allows US citizens who live abroad for at least 330 days in 12 months to deduct up to $95,100 from their US taxes so long as that income was earned abroad. The form also allows US citizens to deduct some foreign expenses, such as housing costs and education costs for minor children.

For people who do not qualify for the Foreign Earned Income Exclusion, Offshore Banking and Company Formation says that Form 1116 may be an option. This form is known as the Foreign Tax Credit and allows US citizens to deduct the amount of income taxes they paid to a foreign government from their US taxes.

Offshore Banking and Company Formation says that many expatriates aren't taking advantage of these forms: "It isn't that expats don't know about the forms. Rather, many simply aren't filing taxes at all. The Foreign Earned Income Exclusion and Foreign Tax Credit cannot be claimed on late tax forms."

Expats who fail to file their taxes do not just miss out on a chance to reduce or eliminate their US tax burden. They also could face fines for failure to file taxes.

At their blog, Offshore Banking and Company Formation gives expats free advice on how to obtain, fill out, and file a Form 2555 and Form 1116. They also provide useful information for how expats can minimize their tax burden legally.

About Offshore Banking and Company Formation

Offshore Banking and Company Formation is an organization which guides small business owners and expats through the offshore banking process. Their website contains unbiased information about how to utilize offshore centers for banking and tax relief.

Offshore Banking and Company Formation

Amelia Sales

702-800-3262

media@offshorebankingandcompanyformation.com

Source: EmailWire.Com