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An average US citizen will find it highly daunting to file their annual tax returns with the IRS. Often, people refrain from delegating the responsibility to a professional expat tax preparers, fearing the exorbitant cost associated with the same. Attempting to understand the many complex deductions, exclusion and tax dates and rates can be nothing less than living nightmare. If the aforementioned complexity is not sufficient reason enough to convince you to hire a professional expat tax preparer, the critical pointers mentioned below will convince you. A professional CPA and enrolled agent will have years of experience filing US tax returns, especially for Americans living abroad. The years of experience will credit them with knowledge required to handle almost everything and anything relating to expats. As opposed to the average CPA, for whom expats only account for a small part of their business, it is advisable to opt for an agent who deals exclusively with expats. People hire professional CPAs mainly due to the speed, accuracy, customized tax strategies, and the ease with which the professionals handle even most complex tax situations. Filing US expat tax is a prerequisite that needs to be fulfilled by every expat US citizen. Irrespective of which country you currently reside in, mode of currency you receive for income, or what taxes you have paid to other countries, you are required to file for expat tax if your current annual income bracket exceeds over the minimum threshold. Hiring a professional tax preparer will help you wade through lengthy documentation procedures and derive the most out of special benefits allowed for expats. Very few taxpayers are aware of the fact that in the name of expat tax, they are overpaying their taxes. There are volumes of ever-changing tax laws that ultimately determine your final tax amount. Even the slightest oversight or miscalculation can bring radical difference in the final tax amount. A tax preparer needs to be updated with latest tax laws, recent tax issues and legitimate deductions, so as to assist you with all your tax needs. Opt for an enrolled agent who has in-depth knowledge and understanding of all the latest tax laws and guidelines. Make it a point to opt for a company that works on flat fee basis, so you can rest easy knowing no extra charges are piled on you at the end of the tax filing process. When you hire a professional to file your expat tax, you will have the confidence of knowing that a professional agent with knowledge and acumen is filing your tax returns. The qualified accountant will work diligently to save you maximum money on your tax returns. A regular taxpayer will fill out the Form 1040 for tax filing. However, for expats their tax filing is going to require Form 2555 and Form 1116. It is only via these forms that a potential taxpayer gets entitled for Foreign Earned Income Exclusion, foreign tax credit and foreign housing deduction. Even for an experienced taxpayer, much less a novice, understanding all the underlying nuance of expat tax law can be challenging. Only feasible course of action is to seek assistance of accredited tax preparer, who can guide you through the many formalities and documentation work. Have questions? Need a sound advice on expat tax? Contact INTAXACT for expert advice on tax management and other accounting services.
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