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A US citizen is required to report their foreign accounts once they exceed $10,000 over one year. This is done via form FBAR 114 to the FINCEN, the US Department of Treasure’s Financial Crimes Enforcement Network. After filing, the documents used for the report must be kept for 5 years. When is it due? Since … Read more

As part of the war on unreported capital and tax evasion, the US initiated FACTA in 2010 – the Foreign Account Tax Compliance Act. According to this law, offshore financial entities are required to search their databases and locate clients with US tax residency under force of citizenship, Green Card, etc., collect this information and … Read more

PFIC – What is it? A PFIC (Passive Foreign Income Company) is a corporation located abroad and meeting one of the following two conditions: Assets test – at least 50% of the company’s assets produce passive income or passive capital gains; Income test – at least 75% of the PFIC’s gross income for the tax … Read more

Students studying at accredited institutions are eligible for a tax credit of up to $2,500. Of these, up to 40% (up to $1,000) can be received as tax return directly to the US bank account or as a check in the mail. Credit is determined according to the tuition amount. In order to be eligible … Read more

American citizens are entitled to receive up to $2,000 in tax credit for each of their American children. Of these $2,000, up to $1,400 can be received as a tax refund directly to the US bank account or by mail. In order to get the refund, the parent must have a personal exertion earnings – … Read more