Income earned in Singapore being a US expatriate gets taxed in many ways. Unfortunately, USA expat taxes are difficult to avoid and this is why it becomes one of our hefty expenses and a source of deadline-induced stress as well as time consuming legal affairs, especially when figuring out the tax requirements for two countries. However, every tax situation is unique, and based on your situation; it is recommended to team up with a qualified American taxation service professional in Singapore to save time and money without giving up any savings.
The responsibility to pay US expat taxes drastically interrupts the adventure of US expats living or working in Singapore. Filing from abroad is more complicated than filing from the US, as expats often have to consider different tax filing requirements. In this post, we will look at the best American taxation service guidance on how to simplify your US taxes in Singapore without giving up your hard-earned savings. You can count on the expertise of USA taxation service in Singapore specialists to take care of everything from foreign tax credits to deadlines while avoiding tax penalties on any matter.
Filing tax reports timely
If you’re a US citizen, keep it in mind your worldwide income is always subjected to US income tax, no matter where you reside or work. So, filing your income tax before the deadline approaches is a must act. However, being a working professional it may not be possible for you to file your expat tax on time and this is where you’ll get noticed by the tax authority and charged for the penalty. This is where you need to hire USA expat tax service in Singapore to reduce your burden of taking care of deadlines and filing income tax reports. The US expat tax professionals are completely well-versed with the filing requirement and know the deadlines to help you avoid paying penalty for late filing.
Claim credits & deductions to reduce their US tax liability
Working as a US expat in Singapore can affect your taxes even if you don’t stay or work for very long there. For example, if you earn income in Singapore while on a short-term assignment, you are required to report your earned income on your US taxes. However, if you seek the guidance of skilled tax experts offering US tax service for Americans in Singapore, you can lower your tax liability as well as avoid double taxation by claiming necessary credit and exclusion you’re eligible for your tax situation. The two main deductions that are tax specialists are experts, include:
- Foreign Tax Credit- It will let you claim a credit for income taxes you have paid to the foreign government.
- Foreign Earned Income Exclusion- This deduction allows you to exclude your earned wages from your US taxes. However, there are certain eligibility criteria prescribed to avail this deduction and only a US tax professional can guide on how to turn this exclusion in your US taxation favor.
Although there is no US tax treaty with Singapore, there are some credits, and exclusions are designed to alleviate their burden to pay US expat tax. These claims are Foreign Earned Income Exclusion, Foreign Tax Credits & Foreign Housing Exclusion to save on your US expat taxes.
Therefore, it’s pretty clear that a well-versed tax professional not just helps you file your US expat tax return within the deadline – but also make you aware of the vital information on how to reduce your tax liability (by claiming the exclusions) as well as helps you stay out of legal trouble for as long as you remain an expatriate.