Did you know?

• The U.S. requires that worldwide income be reported on the U.S. tax returns of all U.S. citizens and resident aliens (green-card holders). 
• The Federal filing limits apply to all U.S. taxpayers. The requirement to file a tax return is NOT dependent on where a taxpayer resides. If a U.S. taxpayer's worldwide income BEFORE exclusions and deductions exceeds the filing limit for their filing status, that taxpayer must file a U.S. tax return.
• The first $105,900 (for tax year 2019) of earned income is eligible for an exclusion from U.S. taxation, but this income must be reported on your U.S. tax return.
• Income that has been taxed by a foreign country may be eligible for a tax deduction or a foreign tax credit.
• There may be some income that is subject to double taxation, depending on the tax treaty between the U.S. and the taxpayer's country of residence.
• When a taxpayer has a foreign employer, the tax rules regarding the taxation of compensation are different than the rules for compensation from domestic or U.S. employers.
• The rules for filing statuses vary slightly for taxpayers that reside overseas or have foreign spouses.
• The tax rules of the U.S. are often very different than the tax rules for other countries so the amounts to report on a taxpayer's U.S. tax return may be very different than those on the tax return of the taxpayer's country of residence.
• There is no single exchange rate to use for translating amounts in a foreign currency to U.S. dollars. Tax laws may require that the daily exchange rate, year-end exchange rate OR the average annual exchange rate be used. The appropriate rate depends on the type of income or deduction to be translated.
• Taxpayers with bank accounts, securities accounts, life insurance, pension accounts and other financial accounts outside the U.S. have additional reporting requirements.

For AIT Services these are everyday issues and we have the experience you need to make sure you comply with the latest tax laws.