Tax Tips for US Citizens Living in the Netherlands
Owe taxes? No passport!
I have had many questions in the past about whether or not owing taxes will result in you being denied entry to the US. My answer has always been that as a US citizen you have a right to enter the US, and only if you had already been found criminally liable and there...
Haven’t filed your Foreign Bank Account Reports (FBAR)? KPMG lays out the reasons why now is a good time.
Foreign Bank Account Reports (FBAR's) are currently policed by the US Department of Treasury's Financial Crimes Enforcement Network (FinCEN). If you haven't filed your Foreign Bank Account Reports yet, it probably makes sense to submit these sooner than later, in case...
Reminder: Q2 2018 Estimated Tax Payments Due June 15, 2018
Just a short reminder that the final 2018 Estimated Tax Payment is due June 15, 2018. To avoid (further) penalties for underpayment of estimated tax, in general, by January 15, 2019 you should have paid (in combination with 2018 US taxes withheld and all other 2018...
2013 Year End Tax Planning and the 3.8% Medicare Surcharge (for Expats)
I think this quote from the August 2013 issue of the Journal of Accountancy sums it up pretty well: “The new surtax on net investment income will come as a surprise to many individuals... Even more surprising for individuals will be that most tax credits (e.g. the...
Is Now a Good Time to Realize Capital Gains? (Specifically for NL Residents)
Assuming no last-minute changes, the maximum US tax rate on long-term capital gains is set to increase on January 1, 2013, from 15% to 23.8% (including a 3.8% Medicare surcharge on investment income over $250,000). There is a lot of advice going around for people to...
2012 Year-End Tax Planning for Dutch BV’s (and Other Privately-Held Corporations)
If the current "fiscal cliff" tax laws go into effect as scheduled, the maximum US tax rate on qualified dividends will go from 15% to 43.4%. What this means for owners of a Dutch BV is that you may have to "top off" your taxes on dividends with an additonal 18.4% to...
Updated Foreign Bank Account Report (FBAR) Form and Instructions Available (Revised November 2011)
If you haven't yet submitted your 2010 (or earlier) Foreign Bank Account Report (FBAR), make sure you use the latest version of Form TD F 90-22.1. The form should mention "Rev. November 2011" in the upper-left-hand corner. The latest form can be found at...
Updated Foreign Bank Account Report (FBAR) Form and Instructions Available (Revised March 2011)
If you haven't yet submitted your 2010 Foreign Bank Account Report (FBAR), make sure you use the latest version of Form TD F 90-22.1. The form should mention "Rev. March 2011" in the upper-left-hand corner. If you enjoy reading very technical articles, the final...
2011 Foreign Earned Income and Housing Exclusion Amounts
For taxable year 2011, the maximum foreign earned income exclusion amount under §911(b)(2)(D)(i) is $92,900, figured on a daily basis, times the number of days during the year that you meet the bona fide residence test or the physical presence test. The foreign...
IRS Gives Taxpayers Another Chance to Disclose Foreign Bank Accounts
The IRS is offering people with undisclosed income from offshore accounts an opportunity to participate in a new, voluntary disclosure initiative in order to get current on their tax returns. The 2011 Offshore Voluntary Disclosure Initiative (OVDI) will be available...
How to Complete Your 2010 Foreign Bank Account Report (FBAR), Form TD F 90-22.1
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts is due every year on June 30, with no extensions possible. This form needs to be completed if the total combined value of all of your accounts outside of the United States exceeded $10,000 at any point...
Reminder: Q4 2010 Estimated Tax Payments Due January 18, 2011
Just a short reminder that the final 2010 Estimated Tax Payment is due January 18, 2011 (since January 15 falls on a Saturday and Monday, January 17 is a public holiday in the US). To avoid (further) penalties for underpayment of estimated tax, in general, by January...
2010 Year End Tax Planning for Dutch Residents: Tax Loss Harvesting
A fairly common tax planning tip is to try to net out your capital gains and losses at the end of the year, so that (ideally) you do not have a "net" taxable gain, especially not a net short-term capital gain since this would be taxed as ordinary income (as high as...
2010 Year End Tax Planning for Dutch Residents: Roth IRA Conversions
It's getting close to the end of the year and the final deadline for Roth IRS conversions. The rules have been relaxed quite a bit so that pretty much anyone can convert their "Traditional" IRA to a "Roth" IRA. The cost of doing this for US purposes is that you need...
2010 Year End Tax Planning for Dutch Residents: Annual Gifting
If you are like many Americans, you may be gifting amounts to your children, grandchildren, friends, etc. each year. Or perhaps you are the lucky recipient of such a gift. If so, you are probably familiar with the US rules that allow you to gift up to $13,000 in 2010...
Are You Subject to Dutch Inheritance Tax?
One of my most shocking discoveries in working with US clients in the Netherlands is how few of them realize that they are potentially subject to Dutch Inheritance Tax (Successiebelasting). Many US citizens living in the Netherlands (actually their heirs) would in...
Is Exercising in 2010 Your Best “Option”?
If you have stock options that have vested, or will vest in 2010, you may be tempted to exercise these options in 2010 since the top US tax rate is 35%, rather than wait until 2011, when the top tax rate is potentially going to increase to 39.6% Conventional advisors...
How To Confirm Receipt Of Your Foreign Bank Account Report (FBAR), Form TD F 90-22.1
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (also known as FBAR) must be received (not mailed or postmarked) by June 30 each year. If you have not yet completed the form, see my post on March 1, 2010 for how to complete this form and where to send...
How to Complete Your 2009 Foreign Bank Account Report (FBAR), Form TD F 90-22.1
Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts is due every year on June 30, with no extensions possible. This form needs to be completed if the total combined value of all of your accounts outside of the United States exceeded $10,000 at any point...
How A Roth Conversion Can Ruin Your Retirement (for Dutch Residents)
To summarize the detailed explanation below, Dutch resident taxpayers should be very cautious about converting from a Traditional IRA to a Roth IRA. Here's why: For 2010, the strict limits that have kept individuals from converting their "Traditional" IRA's to "Roth"...
FA Magazine: Swiss Ruling No Help To Foreign Account Holders
Interesting article from FA Magazine. For the link to the original article Click Here. Swiss Ruling No Help To Foreign Account Holders (January 27, 2010) (Dow Jones) It may seem like a big win for U.S. taxpayers, but a new Swiss court ruling in the UBS AG tax evasion...
Reminder: Q4 2009 Estimated Tax Payments Due January 15, 2010
Just a short reminder that the final 2009 Estimated Tax Payment is due January 15, 2010. To avoid (further) penalties for underpayment of estimated tax, in general, by January 15, 2010 you should have paid (in combination with 2009 US taxes withheld and all other 2009...
2009 Foreign Earned Income and Housing Exclusion Amounts
For taxable year 2009, the maximum foreign earned income exclusion amount under § 911(b)(2)(D)(i) is $91,400, figured on a daily basis, times the number of days during the year that you meet the bona fide residence test or the physical presence test. The foreign...
Complete Text of Sec. 301 of P.L. 110-245 (H.R. 6081) – Applicable “Exit Tax” Law for Expatriators
Here is the full text of Section 301 of P.L. 110-245 (commonly known as H.R. 6081, the Heroes Earnings Assistance and Relief Tax Act of 2008). Sec. 301 is the section that relates to expatriators/expatriation on or after June 17, 2008 (as signed by President Bush)....
Offshore Pension Basics
Many expats end up with a bit of savings while living outside the US. In addition, moving around to different countries and working for many different companies can leave expats feeling left out (or at least confused) when it comes to pension plans and social security...
Is a Foreign Mortgage Worth the Risk?
Anyone who has asked me knows I am no fan of investing in real estate in (Western) Europe at the moment. One of the biggest risks I see (aside from the fact that real estate prices have not "corrected" yet in many cities) is a little-known IRS law concerning taking...
How is the Sale of a Foreign Personal Residence Taxed in the US?
One of the most common issues I see (and probably the one with the most impact) is the taxation on the sale of a foreign personal residence. US citizens (and greencard holders) are required to use the US Dollar as their "functional currency" for all "personal"...
Should you “revoke” the Foreign Earned Income Exclusion?
Based on the current US tax laws for expats, many taxpayers (mainly those in high tax countries) may be better off if they "revoke" one of the main benefits for expats, the Foreign Earned Income and Housing Exclusions. Some background - the Foreign Earned Income and...
What is the US Tax Return Due Date for Expats?
The initial due date for filing your US tax return for all US citizens, greencard holder and other residents is April 15, regardless of where you reside. There is a common misconception that the due date is June 15 for expats. This is partially true - if you are...
I’ve worked in both the US & the Netherlands – Where am I eligible for social security?
Social security is a pretty confusing issue. We don't know if we will get anything at all, and working in multiple countries compounds the confusion. The general principle is that you get paid by the countries where you have paid in social security taxes. However,...