What is the due date for the U.S. return? Should I apply for an extension?

What is the due date for the U.S. return? Should I apply for an extension?

The deadline for filing a U.S. tax return is typically April 15, and Americans residing in the United States must file by April 15th,  an extension of time to file (Form 4868). 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 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 prior year U.S. tax return, you are automatically on our extension list for the current year return, 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.

Click here to download Form 4868 (Extension of time to file)

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Making Payment Using Direct Pay

Making Payment Using Direct Pay

If you would like to make a 1040 payment, or an estimated tax payement, the IRS now offers the free payment service, Direct Pay.

Click here to visit the IRS Direct Pay website

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What is an FBAR (Form 114)?

What is an FBAR (Form 114)?

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 electronically received by (FinCEN) The Financial Crimes Enforcement Network by April 15 each year. The link to file this form is: http://bsaefiling.fincen.treas.gov/main.html

 

To properly fill out the FBAR, you must collect the following information:

  1. Bank name and address, account number(s), and maximum balance for the year in each account for each account you own separately.
  2. 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.
  3. 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).
After determining the maximum balance of each account, you must convert the amount into U.S. dollars using the year-end exchange rate. We have included these instructions, along with past exchange rates, in the FBAR form below.

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.

Click here to access the US Form 114 on FinCen’s website

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Do I need to file a U.S. tax return?

Do I need to file a U.S. tax return?

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 2016, 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: $10,350 (or 9.729€)

Married filing jointly: $20,700 (or 19.459€)

Married filing separately: $4,050 (or 3.807€)

Head of Household: $13,350 (or 12.549€)

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.

* IRS rate of 1.0638 EUR to USD to calculate the euros in the table above.

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