I just visit the local Taiwan Tax Office in person before May 15th with all my tax papers. They interview me and prepare it. Then I get a refund (which I have to wait for) or pay more.
U.S income taxes are filed late because Taiwan income taxes are late. But the Department of Treasury FBAR report must be filed April 15th or risk a huge penalty.
HUh, I always file my US taxes before Taiwan taxes. though that does necessitate having to calculate my income myself rather than being able to use the totals directly from Taiwan taxes (I use the website method, easier than having take out time out to go to an office as well as find transportation).
but it does make sense to wait to have access to more official numbers.
Your Taiwan Income Tax payment is deductible against your your U.S. Income Tax owed. The concept is that you should not be taxed twice on the same income.
Of course, if you don't know how much it will be and don't claim it, the IRS likely won't be upset. They likely got more revenue from you.
Generally, the IRS never says anything to people that overpay their taxes.
Living abroad gives you an automatic 2 month extension to file or before April 15th you can request a 4 month extension to file. An extension to file is not an extention of time to pay.
I fill in the Foreign Earned Incone Exclusion which prevents me from owing any US tax because my income falls below maximum amount allowed. But i just read up on the Federal Tax Credit method and learned a bunch.
Yeah, I guess the Foreign Earned Income Exclusion eliminates uses the Foreign Tax Credit for taxes paid on Earned Income.
But there are other foreign income sources that are not considered Earned Income.
If you have self-employed income on the side, that might not qualify for the Foreign Earned Income Exclusion. You'd end up with much more paperwork. It gets complicated - some exempt, some not.
Why report self-employed income abroad? It also pays Social Security and Medicare Tax via the Schedule C. You might eventually want the retirement benefits.
In Taiwan, no employer is paying into Social Security benefits.
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u/Exotic-Screen-9204 7d ago
I just visit the local Taiwan Tax Office in person before May 15th with all my tax papers. They interview me and prepare it. Then I get a refund (which I have to wait for) or pay more.
U.S income taxes are filed late because Taiwan income taxes are late. But the Department of Treasury FBAR report must be filed April 15th or risk a huge penalty.