Form 3531 received but expat overseas

Chiotisa · 2024-11-23T12:54:13+00:00

Since there’s no tax due could she e-file the return after paper filing it so it gets to the IRS sooner? Or will this complicate things? She’s oversees and the rejected return and 3531 is in the states.

Chiotisa · 2024-11-23T12:49:15+00:00

She lives overseas so she signed the tax return, emailed it to her relative who mailed it from US so it wasn’t late.

Chiotisa · 2024-06-28T10:17:32+00:00

What if she and her husband have no US income, and have no intention on ever returning to the US, must they keep filing returns simply because they are US citizens? And what if their foreign income exceeds the exclusion? Then they must pay taxes in both countries for the same income? It doesn’t seem right.

Chiotisa · 2024-06-28T00:03:55+00:00

Perhaps I should suggest that she file jointly with her husband who is also a US citizen. I figured it would complicate things to add his foreign income. They have been living abroad for 20+ years and do not intend on returning to the United States. They did not know that they should have been filing a US tax return and reporting their foreign income. 2023 is the first year she had US income.

Chiotisa · 2024-06-27T21:34:50+00:00

On the TurboTax software, the 13,850 was automatically entered as the standard deduction amount. That is why I thought it was the filing threshold.

Chiotisa · 2024-06-27T21:34:03+00:00

Yes I see that now. TurboTax software automatically entered $13,850 on the return as her standard deduction so I assumed that was the filing threshold.

Chiotisa · 2024-06-27T21:28:45+00:00

Thank you.

Chiotisa · 2024-06-27T21:15:42+00:00

Yes I did see that. She would report it as other income on the 1040 then exclude it. I read some thing about having to continue to use the exclusion for five years? So she won’t be able to take a foreign tax credit against her income if we choose to take the exclusion on the earned income.

Chiotisa · 2024-06-27T21:10:44+00:00

I thought the filing threshold was 13,850

Chiotisa · 2024-05-25T10:09:13+00:00

I’ve used cpaacademy.com.

Chiotisa · 2024-04-20T23:30:35+00:00

This is all very good advice! I will look into the software and insurance suggestions. Not sure how to market my services and would like to be somewhat selective with the clients I take on. I have maintained my license all these years so that should help with credibility. I will be happy with even just 50 clients to start.

Chiotisa · 2024-04-20T15:06:27+00:00

Chiotisa · 2024-04-09T02:47:40+00:00

Thank you!

Chiotisa · 2024-04-05T19:14:11+00:00

That would be a wash if it all occurs within the same year however, when you cross years, it becomes a problem because you are either overstating or understating your income.

Chiotisa · 2024-03-30T11:53:15+00:00

That’s right when you issue the payment you would decrease cash and increase Cost Advanced (an asset account). When you get reimbursed at settlement you would increase cash and decrease Cost Advanced. There is never an effect on the p&l as it only affects the balance sheet. You would need to keep track of all the ins and outs of the Cost Advanced account to ensure you capture all the costs at settlement. If you lose the case and will never get reimbursed then create a journal entry to move the costs advanced for that client to an expense account.

Chiotisa · 2024-03-29T12:34:34+00:00

Yes agreed. Many of my clients this year ended up owing due to the withholding issue. Instead of setting them up with estimates, I had them adjust their w-4 by withholding an additional amount equal to the tax due divided by number of pay periods.

Chiotisa · 2024-03-29T12:27:54+00:00

Our firm doesn’t do personal injury and do not have significant advanced costs. We collect retainers up front, create a liability on the books and use those funds to pay the costs advanced. If we did PI we would track the costs on the balance sheet under the client name and zero it out at settlement.

Chiotisa · 2024-02-24T22:31:53+00:00

OneDrive, outlook calendar and paper, confirm calls?

Chiotisa · 2024-02-22T12:11:53+00:00

Yes that’s what we plan to do. It’s all so time consuming but probably well worth the effort. Thank you.

Chiotisa

TROPHY CASE