Has the time of moving abroad from the United States for good finally come? While we totally understand that it is a time to celebrate and be more excited about the future, but at the same time, you need to be very much careful about leaving stuff in the past. Yes, we are talking about the U.S expat taxes, and with that, we are also here to convince you why you must have an expat tax consultant UK by your side.
In a nutshell, the US expat taxes are much more complex. It involves deductions that you may not be familiar with before, tax dates that are different, and also exchange rates which can cause a lot of confusion. So, why not leave the matter to the experts?
However, as we know what we have said won’t be enough for many to make the decision. Therefore, to shed more light on the matter we have more reasons below.
1. They Know How To Save You From Double Taxation
Filing the taxes on your own automatically increases the chances of any major mistake or you ending up paying twice more than what you were required to.
Expat Tax consultants on the other hand have spent years serving so many of the US expats living in the UK so as a result, they know what exemptions you can avail and how you can save up more of your money rather than giving it to the US and UK government both.
In fact, there are also ways in which you can get dollar-for-dollar US tax credit when you pay any amount as taxes in the UK. Hence, to avail that and much more you need a consultant by your side at all times.
2. There Is No Tax Software
Living in the US, the filing of your taxes becomes relatively easy with tax software that is designed on the basis of doing simple tax returns. However, once you move abroad, you don’t get that advantage as there is no tax software to deal with the complicated exclusions, deductions, currency conversion, or schedules which are required in the case of US expat taxes living in the UK.
Hence, as a result, expats are bound to do tax returns and fill forms manually which eventually makes the process time-consuming and also tricky. So, get rid of the hassles and let experts handle your tax calculations to perfection!
3. Dealing With Different Tax Laws In States Can Be A Problem
The biggest problem that exists in the case of US expat taxes is that every state has a different law regarding how their citizens will be taxed overseas. There are also states that require no income tax and thus no returns.
But if you belong to California, New Mexico, or South Carolina, you would be required to pay taxes because of your domicile belonging to the state. In such scenarios, an expat tax preparer knows about the rules and requirements of every state, along with how to cut ties when you want to avoid taxes so you’re always in safe hands.