For tax year 2012, the Federal Reserve’s official EUR to USD average exchange rate is 1.2859, and this is the exchange rate that we will use in preparing U.S. and French tax returns. The 2012 year-end EUR to USD exchange rate used for the FBAR and Form 8938 is 1.3175.
Historical Summary of Exchange Rates Historical Summary of Exchange Rates
(Income Conversion on Tax Return): (Form Form TD F 90.22-1 and Form 8938):
2012: 1.2859 2012: 1.3175
2011: 1.3931 2011: 1.3072
2010: 1.3261 2010: 1.3253
2009: 1.3935 2009: 1.4333
2008: 1.4726 2008: 1.4097
The deadline for filing a U.S. tax return is typically April 15, and Americans residing in the United States must file an extension of time to file (Form 4868) by April 15. Taxpayers who file an extension request timely can receive an extension through October 15.
Americans who are abroad on April 15 receive an automatic extension through June 15, and may file an an extension of time to file through that date. Americans living abroad can receive an additional extension to December 15.
Horton Tax Services automatically files extensions for our current client list on April 15, June 15, and October 15, in order to allow us time to complete all of our clients’ tax returns. If we have completed your 2011 U.S. tax return, you are automatically on our extension list for 2012, and do not need to contact us or do anything in order to receive an extension.
If we have not previously completed your tax return, or if we completed your return in prior years, please call or email us before April 1 to make sure you are on our current extension list. You may also file your own extension by the appropriate deadline and provide us with a copy so we may complete your tax return.Read More
The FBAR, or Foreign Bank Account Report, is a form that U.S. persons must fill out if they have more than $10,000 in bank accounts outside of the United States at any time during the year.
The form must be received by the Detroit IRS office by June 30 each year. The address is on the first page of form 90.22.1
To properly fill out the FBAR, you must collect the following information:
- Bank name and address, account number(s), and maximum balance for the year in each account for each account you own separately.
- Bank name and address, account number(s), and maximum balance for the year in each account for each account you own jointly with your spouse or children.
- Bank name and address, account number(s), and maximum balance for the year in each account for each account you have signatory authority over (for an association or company, for example).
Please note that you *must* report all of your bank accounts, even if the balance was minimal, and you *must* report the account’s maximum value during the year, even if you have transferred money between accounts.Read More
All U.S. citizens and green card holders who have not formally surrendered their green cards are required to file tax returns even if they do not reside in the United States, and even if they do not expect to owe tax. U.S. tax returns must declare a taxpayer’s gross worldwide income according to U.S. tax rules, regardless of whether certain indemnities and income is considered nontaxable in the taxpayer’s country of residence.
In 2012, you must file a U.S. tax return if your GROSS income (brut salaire and all investment and rental income, NOT net fiscal) exceeds the following income requirements:
Single: $9,750 (or 7.582€)
Married filing jointly: $19,500 (or 15.164€)
Married filing separately: $3,800 (or 2.955€)
Head of Household: $12,500 (or 9.721€)
Even though you are required to file a return, you won’t necessarily owe U.S. tax. You may be eligible to claim the foreign earned income exclusion and foreign tax credits to reduce your U.S. tax liability.Read More