Globalization has introduced many investment opportunities for US investors. Nowadays it is quite common to diversify a portfolio with a variety of foreign stocks. Some of these investments generate foreign dividends. The issue that US investors face is a withholding overseas tax. Claiming the foreign tax credit is one of...
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Obamacare and American Expats Living Abroad
Obamacare has introduced many changes for Americans effective in year 2013. The Supreme Court adopted the US Patient Protection and Affordable Care Act (PPACA) in June 2012. Many provisions of Obamacare will affect mostly US citizens and green card holders residing in the USA. For example, effective January 1, 2014...
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Foreign Spouse: Filing an income tax return Married Filing Jointly
Moving overseas is an exciting experience that is full of adventure and challenges. Many US expats living abroad meet their loved one and get married. Filing US expatriate tax returns on overseas taxes is even more challenging for American expats who file with a nonresident spouse. Foreign spouse income tax...
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India FATCA Developments
American citizens and green card holders with financial assets in India must be prepared for the latest FATCA developments. Earlier we discussed FBARs requirements for Nonresident Indian Accounts (NRA). The India FATCA inter-government agreement is in the process of consideration by India’s capital market regulator Sebi. American expatriates should make...
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Foreign Tax Credit: Foreign Income Tax on Net Investment Income
American expats living abroad use the foreign income exclusion, foreign housing exclusion or foreign tax credit to minimize US tax liability. However, 3.8% Medicare tax on net investment income might expose US expats to double taxation on net investment income (NII) effective in a tax year 2013. Specifically, the foreign...
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