Taxes can be overwhelming to anyone. But, when you’re an expatriate living abroad, they can be really complicated. These are times when it pays to have an international tax law specialist. As a U.S. expatriate residing abroad, you have a legal obligation to file U.S. tax returns each year on your worldwide income. An international tax law specialist can help you with these filings, ensuring you receive all the deductions to which you are entitled, but also to help you stay within US tax laws while living abroad.
There are some tax exemptions due for expatriates living abroad that an international tax law specialist can help you sort out. For example, if you are a full time resident abroad for a full calendar year, or live there for 330 days out of any consecutive 12 month period, you can exclude up to $80,000 of earned income from US taxation for years 2003 and beyond. If you’re married, you can also exclude up to another $80,000 of your spouse’s income if you file jointly. Rental income, interest income and dividends you receive are not subject to exclusions; only income you receive from working counts. However, you must file a tax return each year to get these exclusions.