It’s that time of the year again, many preferred to call it a tax season. Since the rules for expat USA tax Singapore seem to change daily by the authority, it is highly recommended to monitor those changes for accurate and timely filing of tax. Living in another country like Singapore is a dream come true for many expats. But among the concerns of living outside the United States- like tax issues will eventually turn this dream into a nightmare.
If you have never lived abroad for a long period of time, you may don’t know that the law of the United States requires its citizen to continue to pay taxes back home. You are always required to file taxes on foreign earned income even if you pay taxes in Singapore. The best part is that if you are paying US taxation Singapore, there are several tax exemption and exclusion available to prevent you from paying the higher tax on the same income to the IRS too. But this will only be eligible if you take the assistance of the right tax professional.
Here are some valuable tips available that prepare you for the upcoming tax filing season.
Tips For Filing Expats US Tax Singapore
- Be organized
If you tend to ignore your last year tax filing blunder where you leave the tax filing task at the last minute, this year if you do the same you’ll regret for many years. It’s always important to get organized with your tax files and documents. Create either a digital or printed form of every source of income and expense so your hired USA taxation professional in Singapore can get your tax return done with precision and within the deadline.
From now onwards, collect them and organize them in sequential order, so the 2021 tax season for filing US tax in Singapore starts on the right track. Here are some documents you need to collect:
- Investment property income
- Cancellation of debts
- W-2, provided by your employer
- 1099 – MISC forms, provided by the one to whom you worked as an individual contractor
- Social security income statements
- Property taxes
- Medical expenses
- Higher-education expenses
- Mortgage interest
- Interest on student loan
The more financial transaction you relate to, the more documentation you seem to manage. And if in case, you’re self-employed, you also need to keep the track of business expenses and income such as supplies, and travel.
- Keep monitoring the changes made in American tax Singapore
Nothing is constant in the world and so the US expat tax laws in Singapore. Every year tax authority introduces changes in the tax legislation as per the situation. You will need to make sure that any of the changes impact your liabilities to pay for American tax Singapore or need to know whether the deductions or credits are still eligible for you.
Make sure you fill the right expat tax-related forms. As the IRS updates its form every year. To ensure you are using the latest updated form, check with the IRS official website and ensure your tax professional is up to the right speed.
- File electronically
It is the best way to get your taxes filed in no time and without any hassle. There is no need to go to the post office in a hurry on the last day and hope it gets delivered timely. You can’t leave your tax filing obligation on hope. Electronic filing is the best means to fill your taxes timely with no complication and extra trouble. It really saves your productive time.
While it is understandable that the late filing of taxes is the last thing you ever expect and this is why our mentioned tips list will help you avoid pitfalls and prepare for the next year tax filing season.