US Taxpayers who worked in France: See the 'CSG and CRDS Taxes' section at the bottom
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Keeping up with tax filing requirements can be a real challenge for US persons overseas.
If you are a U.S. citizen or resident alien, the rules for filing income tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.
US taxpayers report their income on form 1040, but there are other filing requirements:
Despite these filing requirements, living outside the US can be advantageous from a tax perspective due to the foreign earned income exclusion (FEIE) that enables you to exclude a portion of your earned income from US taxes. You qualify for the FEIE by passing either the physical presence test or the bonafide residence test.
Do contact me if you are outside the US and you require a tax consultation or tax preparation assistance that pertains to the aforementioned issues.
CSG and CRDS Taxes
French Contribution Sociale Generalisee (CSG) and Contribution au Remboursement de la Dette Sociale (CRDS)
In 2019, the United States and the French Republic memorialized through diplomatic communications an understanding that the French Contribution Sociale Generalisee (CSG) and Contribution au Remboursement de la Dette Sociale(CRDS) taxes are not social taxes covered by the Agreement on Social Security between the two countries. Accordingly, the IRS will not challenge foreign tax credits for CSG and CRDS payments on the basis that the Agreement on Social Security applies to those taxes.
The IRS’s change in policy means individual taxpayers, who paid or accrued these taxes but did not claim them, can file amended returns to claim a foreign tax credit.
Generally, you have 10 years to claim refunds by filing amended returns. This could result in significant refunds, so feel free to contact me to discuss your options.
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Keeping up with tax filing requirements can be a real challenge for US persons overseas.
If you are a U.S. citizen or resident alien, the rules for filing income tax returns and paying estimated tax are generally the same whether you are in the United States or abroad. Your worldwide income is subject to U.S. income tax, regardless of where you reside.
US taxpayers report their income on form 1040, but there are other filing requirements:
- FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR): U.S. persons, which include U.S. citizens, resident aliens, trusts, estates, and domestic entities that have an interest in foreign financial accounts and meet the reporting threshold
- Form 8938, Statement of Specified Foreign Financial Assets: Specified individuals and specified domestic entities that have an interest in specified foreign financial assets and meet the reporting threshold
Despite these filing requirements, living outside the US can be advantageous from a tax perspective due to the foreign earned income exclusion (FEIE) that enables you to exclude a portion of your earned income from US taxes. You qualify for the FEIE by passing either the physical presence test or the bonafide residence test.
Do contact me if you are outside the US and you require a tax consultation or tax preparation assistance that pertains to the aforementioned issues.
CSG and CRDS Taxes
French Contribution Sociale Generalisee (CSG) and Contribution au Remboursement de la Dette Sociale (CRDS)
In 2019, the United States and the French Republic memorialized through diplomatic communications an understanding that the French Contribution Sociale Generalisee (CSG) and Contribution au Remboursement de la Dette Sociale(CRDS) taxes are not social taxes covered by the Agreement on Social Security between the two countries. Accordingly, the IRS will not challenge foreign tax credits for CSG and CRDS payments on the basis that the Agreement on Social Security applies to those taxes.
The IRS’s change in policy means individual taxpayers, who paid or accrued these taxes but did not claim them, can file amended returns to claim a foreign tax credit.
Generally, you have 10 years to claim refunds by filing amended returns. This could result in significant refunds, so feel free to contact me to discuss your options.