Federal Tax Return (Form 1040)
Expat Tax Professionals is ruthlessly rigorous in preparing your U.S. income tax return (Form 1040) — leveraging available provisions to optimize the unique position of our clients while minimizing exposure.
Do I Need to Complete a Tax Return?
If you are neither a U.S. citizen nor a green card holder, you still may have the Form 1040 filing requirement if you fail the substantial presence test for the calendar year. This test is failed if you are physically present in the United States on at least: (a) 31 days during the current calendar year; and (b) a total of 183 days during the current year and the 2 preceding years, counting all the days of physical presence in the current year, but only one-third the number of days of presence in the first preceding year, and only one-sixth the number of days in the second preceding year.
The requirement to file applies regardless of whether you spent time in the U.S. during the year or had income from U.S. sources. Meaning, even if you spent the entire year abroad and earned all of your income abroad and paid tax on the income to your country of residence, you’re still required to file a U.S. tax return.
This may sound scary and even costly, but keep in mind that although you must report the income you earn, very often your U.S. federal tax liability should be minimal (if not zero) due to various exclusions and credits you can take – and this is where we can help!
However, if you owe tax, the extension applies only to the tax return filing, not the tax payment. You still must submit your payment by April 15th.*
(*On March 21, 2020, the IRS announced that, in response to the COVID-19 global pandemic, the federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.)
U.S. Tax Return (Form 1040) Service
Unlike other sites offering U.S. expat tax return services, our standard package includes all of the basic forms that most U.S. expats need to include in their tax returns. We also do not charge more based on higher income.
Our service includes the preparation of the following forms and schedules:
- Form 1040 (individual tax return)
- Form 1116 (foreign tax credit)
- Form 2555 (foreign earned income exclusion)
- Schedule A (itemized deductions)
- Schedule B (interest and ordinary dividends)
- Schedule C (self-employment reporting, if required)
- Schedule D (capital gains and losses)
- Schedule E (one property / K-1)
In addition to the basic forms and schedules listed above, expat taxpayers may be required to file certain additional federal tax forms depending on their activities and income amounts.
We prepare any and all forms that an expat taxpayer may need to file, including the following:
- Form 8938 – FATCA reporting of specified foreign financial assets: $150 (up to 5 accounts)
- Form 3520 – dealings with foreign trusts including certain foreign pensions and the receipt of large gifts from nonresidents: $500
- Form 3520-A – ownership of a foreign trust including certain foreign pensions: Due to recent changes under the Trump tax reform, we will customize our fee quote based on your circumstances.
- Form 8621 – ownership interest in a Passive Foreign Investment Company: $75
- Forms 5471 and 8992 – ownership interest in a foreign corporation: Due to recent changes under the Trump tax reform, we will customize our fee quote based on your circumstances.
- Form 8865: ownership interest in a foreign partnership: Due to recent changes under the Trump tax reform, we will customize our fee quote based on your circumstances.
- Form 8833 – claiming benefits under a tax treaty with the United States: $250
- Form 8858 – ownership in a foreign disregarded entity: $500
- Form 8829 – expenses for business use of your home: $50
- Additional Schedule C – As stated above, one Schedule C form is no extra fee. Each additional: $75
- Additional Property / K-1 in Schedule E – As stated above, one property / K-1 is no extra fee. Each additional: $75
Our experts at Expat Tax Professionals have extensive experience with all of the forms that are relevant to U.S. expats, and will identify, based on your circumstances, the reporting requirements that apply to you.