I'm trying to figure out how to file my taxes during spring. I do live outside the US but my work is remote so all of my business comes from the US. I'm also a small business owner (single owner LLC) and file as such. I have no idea how to properly file my taxes anymore. I feel like it hypothetically shouldn't be hard since all of my work is still from the US and I have no employees. The only thing is that I have no idea what to put my business address as. Not to mention, I got married but I don't know how to report that either. Please help so I don't have to pay a ridiculous amount of money to some tax service to figure this out! Even a cheaper tax service that specializes in expats would be fine, but I am worried seeing these quotes of $1K+
How to file as a US citizen living in another country
byu/Accomplished_Low5325 intax
Posted by Accomplished_Low5325
3 Comments
accountant fees are tax deductible since you are a business owner!
File a normal Form 1040. Report your single-member LLC on Schedule C and pay self-employment tax on Schedule SE.
You still owe U.S. tax even if u live abroad.
Use either Form 2555 (Foreign Earned Income Exclusion tests: bona fide resident or 330-day physical presence) or Form 1116 (Foreign Tax Credit). FEIE doesn’t erase SE tax; a totalization agreement + paying into the foreign system can.
use your current foreign residential address on the 1040 and the same (or “c/o” U.S. mail drop) on Schedule C.
if spouse is nonresident alien, choose MFJ by electing 6013(g) (spouse needs ITIN via W-7) to get the standard deduction, tradeoff is worldwide income is reportable; otherwise MFS.
automatic to June 15; FBAR if foreign accounts >$10k; FATCA 8938 if thresholds met.
Get tailored advice from a pro, as you’re a business owner; you are eligible for a deduction. Hope this helps!
What’s the other country where you physically reside?
Do you file taxes there?
Does your wife file taxes there? Does she have earned income from working?
Do either you or your wife have bank or brokerage accounts, outside the USA, that are worth more than $10,000 when added all together? If so, you have an FBAR filing requirement. This is critical.
You must keep track of every day that you are in the USA during the year, for any purpose whatsoever, and the dates you arrived and left. You must keep track of how many of those days you worked.
Also if you are living abroad, your US tax filing due date is automatically moved from April 15 to June 15. Naturally you can file an extension to October 15 like anyone can.
You should be making estimated payments of your income tax due four times a year. You aren’t having any withholding done from your wages/revenue while you are abroad so you should do it yourself, effectively. This is due on the 15th of April, June, Sept, and January during the year you are earning the money.
Finally, how much total revenue are you taking in, with your business?