If you file and prepare your US taxes, you already know the importance of having USA tax services in Hong Kong to avoid double taxation. If you are a US citizen or a resident alien who work in Hong Kong or have income earned in foreign countries, then you are subject to file US income tax, regardless of where you are living. Complying with the complicated deductions, exclusions, tax deadline, and exchange rates, US tax return for expats seems to be more complex than paying standard US taxes. This is the time when hiring a specialized US expat tax preparer stands out as a wise decision to file your expatriate tax return.
Here’s why you should hire US tax services in Hong Kong and avail the best deductions possible with an expert tax specialist help.
- You are required to overcome US expat tax obligations
No matter where you live, whether in Hong Kong or anywhere in the world, what taxes you have already paid to other countries, you are required to file US expat taxes in case you have earned income over the minimum thresholds. Considering the complexities involved in filing US tax in Hong Kong, you may find the help of a tax preparer as an ideal solution rather than filing taxes twice.
- Complicated to claim the requirements for US tax exemptions
You may find no issue while filing the Form 1040, but for US expat taxes, your return requires Form 2555 and 1116 for claiming the exemptions like Foreign Earned Income Exclusion (FEIE), Foreign Tax Credit and Foreign Housing Deduction. Filing these forms is not an easy task, even for experienced US taxpayers.
- Reconciling tax information
Fortunately, some US expats are lucky enough to not worry about reconciling tax dates, whereas many jurisdictions, namely UK, Hong Kong, Australia, and New Zealand – all have different tax filing dates. However, the US requires its taxpayer or tax preparer to file the return using the US tax year- this means to review the tax statements from multiple years, payment history, and finding the correct income.
- US expat tax law is boring
The laws for US expat tax changes every year. There are high chances for expats to overlook the tax law changes introduced during the taxation year. It is a costly and time-consuming matter to rectify the error made due to overlooking the changes. As a result, you are required to bear hefty penalties and fines which may bother you. Another complex issue is that if one of your returns is found incorrect due to any reason, the IRS (Internal Revenue Service) will look into the previous years to check if they were prepared correctly in past years. Instead, getting into the detail of US expat tax laws you would prefer to lean on the tax expertise experience to avoid such a drastic situation where IRS itself made the investigation.
Since taxes for expats are more complex than finding livelihood while living overseas, ensure you hire the best tax preparation specialist who knows how to prepare tax to your best advantage.