Myth #1: Individuals living outside of the U.S. and filing tax returns with a foreign government don’t have to file annual U.S. tax returns.
Myth #2: Expats only need to report their U.S. income on their U.S. tax return.
Myth #3: If their foreign income is below the Foreign Earned Income Exclusion (FEIE), expats don’t need to file a U.S. tax return.
Myth #4: Work performed by an expat within the U.S. but paid by an expat’s foreign employer is foreign income because it’s paid by the foreign employer and not issued on a W-2.
Myth #5: Expats’ non-U.S.-based pension plans have the same tax treatment in the U.S. as they do in their country of residence.
Myth #6: When expats receive certain items of income, they’re only taxable in their country of residence under the rules provided for in the income tax treaty the foreign country has with the U.S.
Myth #7: An expat’s foreign investments are treated the same as they are in the foreign country.
APEC Business Travel Card Facts:
- Prerequisite: Already enrolled in a U.S. government “trusted traveler program” such as Global Entry.
- Cost $70, not including $100 cost for Global Entry membership
- Places that accept the card: Australia, Brunei, Canada, Chile, China, Hong Kong, Indonesia, Japan, South Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Singapore, Taiwan, Thailand, U.S., Vietnam
- Where to apply: https://goes-app.cbp.dhs.gov. Must conduct in-person interview. Currently only available in the U.S. and Singapore.
- Exclusions: News correspondents, athletes, entertainers. Can’t be used on vacation
In case you missed it, on Dec. 3, the U.S. Congress overwhelmingly passed the FAST (Fixing America’s Surface Transportation) Act and on Dec. 4 President Obama signed it into law. For many Americans this could be even worse than Fatca. Buried in the law were two tax provisions that should make anyone dependent on their U.S. passport shudder.