Filing for offshore entities
In addition to annual tax reports and reports of global income, US citizens are obligated to file informative and declarative reports concerning their holdings of foreign entities according to preset criteria. Offshore company An offshore company’s owner or chief executives must disclose according to five categories. Each category requires disclosure and a statement regarding more
Social Security Administration
The US Social Security Administration is an independent federal entity responsible for social security, under the Social Security Act (1935). The SSA operates three social security plans: retirement benefits, survivor benefits and disability benefits. Social Security is funded by salary tax provisions by individuals throughout their period of employment. Only individuals who paid regularly over
FBAR form
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
FACTA treaties
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
PFIC
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
AOTC – American Opportunity tax Credit
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
CTC – Child Tax Credit
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 –
