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How should you report your taxes?

Non-Resident x Resident Alien

How do you know how to report your income tax in the U.S. if you are a foreign national?

If you are currently living in the United States for work or study, you might qualify to file your tax return as US Resident for tax purposes.

To qualify to file your taxes as a U.S. resident you need to meet either the green card test or the substantial presence test for the calendar year. If you qualify to file your taxes as a US Resident, you will be allowed the same deductions that U.S. citizens have but you will also have the same obligations. That means you will have to report your worldwide income, make estimate payments, and follow the same deadlines as a U.S. citizen.

There are also other obligations that a U.S. resident has when reporting income, such us Fbar (Report of Foreign Bank and Financial Accounts) and FATCA to report financial assets outside the United States. If you are here as a Student and qualify as a resident based on the presence test you can still choose to file as a Non-Resident for up to 5 years and request an exemption on reporting worldwide income, this way your only obligation is to report income received in the U.S. territory.

However, if you recently became a permanent resident (Green Card holder) you will have to report as a Resident and include your worldwide income.

Anyways, if you are a new resident of the United States to figure out the best choice for you when reporting your taxes is to contact a tax professional that can explain to you the options and what is the best choice for you.

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Welcome 2021!!!

I am sure we are all glad to have survived 2020, but how many of us were prepared for a health and financial crisis that affected the whole world?

How many of you had the financial resources to stop working and stay home keeping your family and others safe?

I am sure not everyone.

Do you feel like you have control of your money or is your money controlling you?

Have you ever heard of the concept “Pay yourself first”?

This is a reverse budgeting strategy that can be used for your business and your individual finances where you focus on always saving a portion of your income before paying all the bills.

This savings can be used for many purposes like, emergency fund, retirement, college, and any unexpected situations like a pandemic.

Building an emergency fund can protect you and your loved ones in case of adversity and help you stay out of debt when a crisis strikes. Is also the best way to plan and achieve bigger goals in life.

But be aware that putting your money in a savings account is almost the same as putting under the mattress with extremely low interest offered in the market; and investments that offer a higher rate usually have a lot of restrictions and your money is not available right away or without penalties in case of an emergency.

But there is hope, that is many options and products created to help your money stay protected from market changes and grow with compound interest.

The government knows that not everyone is knowledgeable with the stock market and people need a way to prepare for the future growing their money tax free and protected.

January is usually a month for goal settings and planning so there is no better time to focus on your financial planning and make sure you will always be prepared for situations like we just had in 2020.

We can help you conquer your financial goals and protect your family.

Schedule a consultation.

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Tax Preparation for 2021

Tax Preparation for 2021

Are you ready for the next tax season? 2020 flew by us and is already time for the new year.

I would like to give you a few tips on how to get your paperwork ready and organized to make your life easier when is time to file your taxes. The IRS deadline for companies to send out W-2s and 1099 to their employees and contractors is January 31st, so please make sure that you received all your income reports before scheduling your appointment. You may also need to bring your mortgage statement (1098), college or student loan statements and health insurance statement (1095) if you had insurance with a subsidy of the Affordable Care Act (Obamacare).

Not bringing all the necessary documents to you tax preparation appointment can cause delays on the process and even put a hold on your refund if the documentation is missing.

We have a detailed check list to help you make sure to be prepared and make the tax preparations process as easy as possible.

Contact us and we will provide you with all the information needed.

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International Students F1 can declare TAX?

International Students F1 can declare TAX?

 

Even though most international students don’t need to report income tax, if there are living in the US and meet the substantial presence test they must file exemption form 8843 to avoid having to report global income in the US as a resident.

However, if the international student worked as part of his program or had any other income source in the US during the year he must report and pay the applicable taxes.

To know more about the US requirements for international students please contact us.

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Tips to Save Money in 2021

Tips to Save Money in 2021

 

There is no better time than now to start your financial planning for 2021 and learn how you can save money on your taxes and plan for your future.

Creating a budget is a great way to take control of your money and save for the big dreams. Without a plan money comes and goes without a purpose and we end up with empty pockets.

There are many aspects in life that we need to plan for, such as buying a house, kids college, retirement and also for that very exciting vacation.

Schedule a free consultation we can help you get organized and conquer your dreams.

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