Click here to close now.




















Welcome!

News Feed Item

U.S. Citizens Living Abroad Face Filing Confusion, June Deadline

H&R Block Offers Advice and Assistance to Expats Wondering About Filing, Health Care Requirements

KANSAS CITY, MO -- (Marketwired) -- 05/08/14 -- With their tax filing deadline approaching, it is likely 1 in 3 U.S. expats hasn't filed a 2013 tax return, according to an H&R Block (NYSE: HRB) survey. Since the United States is one of the only countries that taxes income based on citizenship instead of residency, all U.S. citizens living or working abroad face a June 16 filing deadline this year.

Since the regular due date of June 15 falls on a Sunday, the deadline is pushed to June 16 this year. In addition, returns for those on military duty abroad also are due at that time. To help these taxpayers meet their filing obligations, H&R Block launched a remote filing service last season and expanded that service for this tax season.

"Depending on where they live, U.S. expats may miss friends and family, certain foods and their favorite hangouts in the states. But, one thing they shouldn't miss is the tax filing deadline," said Roland Sabates, director of H&R Block's expat filing services.

H&R Block is the only company that can serve this unique taxpayer in an office abroad or via its expanded remote service. To better understand their U.S. tax obligations, expats should start by answering three questions:

1. Are they required to file?
2. How do they report money in foreign accounts and what foreign assets must be reported?
3. And new this year, what is their obligation to have health insurance?

Know the filing requirements

Citizens who meet the minimum income requirements for 2013 -- $20,000 for married filing jointly and $10,000 for single filers -- are required to file a federal tax return regardless of where they live, even if all of their income was earned in a foreign country. Some taxpayers working abroad may be able to exclude some or all of their foreign earned income and/or claim a credit for foreign taxes paid on their U.S. tax return, which could offset any taxes owed to the United States.

Taxpayers working abroad who are not able to file an accurate return by June 16 can submit a tax filing extension to make their filing deadline Oct. 15. While penalties are not assessed, interest accrues on any balance due from the April 15 filing deadline.

Understand the rules about reporting money in foreign accounts and assets

United States citizens or residents who own or control foreign financial accounts must file a foreign bank account reporting form (FBAR) if the accounts' combined value exceeds $10,000 at any point during the year. This account reporting form must be submitted to the Department of Treasury by June 30, but the information also may need to be included with the tax return (due June 16) on Form 8938, Statement of Specified Foreign Financial Assets.

On the statement of assets taxpayers must report information about ownership interests in foreign business entities and securities not in an account. This statement must be submitted by June 16 with tax returns.

"While some of the financial reporting rules won't apply to all expats, it's still very important that these taxpayers claim all the tax credits and deductions they qualify for and not pay taxes on income that should be excluded," Sabates said.

Understand health insurance obligations

While proof of health insurance is not needed for the 2013 tax return, it will be important to understand the obligations for next filing season. In general, for 2014, most U.S. citizens will be required to have health insurance. Those who do not obtain insurance for the whole year could qualify for an exemption, have to pay a penalty or both. However, many U.S. expats may be deemed to meet the insurance requirement and thus would not have to obtain an exemption.

In general, taxpayers who qualify to exclude their foreign earned income, as mentioned earlier, would also be treated as having met their health insurance coverage obligation. Otherwise, the taxpayer would have to get insurance coverage unless an exemption applies.

"ACA compliance adds another level of complexity to the filing process for expats," Sabates said. "Our international filing experts are well versed in both ACA issues and tax filing obligations for expats. We can help them understand their options when it comes to avoiding any penalties for not having insurance in the event they are not already exempt from this requirement."

Expats can have their U.S. tax returns completed by H&R Block tax experts in an H&R Block office in more than 14 countries and U.S. territories. In addition, they can now work with a tax professional, using the company's virtual service. The virtual service is a secure option that includes a customized interview to ensure an accurate return is prepared. Plus, all the benefits of an H&R Block office experience are available, including accuracy guarantees and the opportunity for free Second Look® reviews of past returns.

To find an international H&R Block office, visit expats.hrblock.com or call 800-HRBLOCK.

About H&R Block
H&R Block, Inc. (NYSE: HRB) is the world's largest consumer tax services provider. More than 625 million tax returns have been prepared worldwide by and through H&R Block since 1955. In fiscal 2013, H&R Block had annual revenues of $2.9 billion with 24.8 million tax returns prepared worldwide. Tax return preparation services are provided in over 11,000 company-owned and franchise retail tax offices worldwide by professional tax preparers, and through H&R Block digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Newsroom.

Add to Digg Bookmark with del.icio.us Add to Newsvine

For Further Information
Gene King
816-854-4287
Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Mobile, social, Big Data, and cloud have fundamentally changed the way we live. “Anytime, anywhere” access to data and information is no longer a luxury; it’s a requirement, in both our personal and professional lives. For IT organizations, this means pressure has never been greater to deliver meaningful services to the business and customers.
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
In a recent research, analyst firm IDC found that the average cost of a critical application failure is $500,000 to $1 million per hour and the average total cost of unplanned application downtime is $1.25 billion to $2.5 billion per year for Fortune 1000 companies. In addition to the findings on the cost of the downtime, the research also highlighted best practices for development, testing, application support, infrastructure, and operations teams.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Learn how you can use the CoSN SEND II Decision Tree for Education Technology to make sure that your K–12 technology initiatives create a more engaging learning experience that empowers students, teachers, and administrators alike.
Container technology is sending shock waves through the world of cloud computing. Heralded as the 'next big thing,' containers provide software owners a consistent way to package their software and dependencies while infrastructure operators benefit from a standard way to deploy and run them. Containers present new challenges for tracking usage due to their dynamic nature. They can also be deployed to bare metal, virtual machines and various cloud platforms. How do software owners track the usag...
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his session at 17th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Partnerships at Com...
SYS-CON Events announced today that VividCortex, the monitoring solution for the modern data system, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The database is the heart of most applications, but it’s also the part that’s hardest to scale, monitor, and optimize even as it’s growing 50% year over year. VividCortex is the first unified suite of database monitoring tools specifically desi...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
There are many considerations when moving applications from on-premise to cloud. It is critical to understand the benefits and also challenges of this migration. A successful migration will result in lower Total Cost of Ownership, yet offer the same or higher level of robustness. In his session at 15th Cloud Expo, Michael Meiner, an Engineering Director at Oracle, Corporation, analyzed a range of cloud offerings (IaaS, PaaS, SaaS) and discussed the benefits/challenges of migrating to each offe...
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...