Information courtesy of IRS
Are you a U.S. citizen or resident who worked abroad last year? Did you receive income from a foreign source in 2014?
- Report Worldwide Income. By law, U.S. citizens and residents must report their worldwide income. This includes income from foreign trusts, and foreign bank and securities accounts.
- File Required Tax Forms. You may need to file Schedule B, Interest and Ordinary Dividends, with your U.S. tax return. You may also need to file Form 8938, Statement of Specified Foreign Financial Assets. In some cases, you may need to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts.
- Review the Foreign Earned Income Exclusion. If you live and work abroad, you may be able to claim the foreign earned income exclusion. If you qualify, you won’t pay tax on up to $99,200 of your wages and other foreign earned income in 2014.
- Credits and Deductions. You may be able to take a trax credit or deduction for income taxes you paid to a foreign country.
Give us a call regarding foreign income. We can help you navigate the rules.
