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US citizens living abroad are confused about their expat taxes. Here are certain things that the US expats living in Switzerland need to know about their US taxes obligations.

1. US residents living abroad are liable for American Tax if they are the green card holder or have a US passport. The United States and Eritrea are the only countries in the world that tax their residents no matter where they reside. So the rules for filing US tax returns are the same when living abroad or in America.

As the United States taxes its citizens based on citizenship, no matter where they live, US citizens in Switzerland must file their US expat tax return with the IRS.

2. Expats mainly do not owe taxes: One of the most common questions is whether US expats pay taxes. Many American expats do not owe taxes to the IRS when living abroad. The reason is because of a few tax benefits and exclusions that protect them from double taxation on foreign income. These mechanisms are Foreign Earned income exclusion, Foreign tax credit, Foreign Housing exclusion, Tax treaty benefits, and the child tax credit and additional child tax credit. Normally US expats living in Switzerland can do away with their taxes with the above exclusions and credits.

3. File US tax returns if they meet the requirements: Tax filing requirements for US Citizens living abroad depending on their filing status and worldwide income. So, they must file a US tax return if their gross income from worldwide sources is at least the threshold amount.

4. US expats get automatic two-month extension to file: Taxpayers American living abroad get extra time to file their expat tax return every year. IRS allows expats an automatic two-month extension to file their expat tax returns. The extension is also applied to resident aliens living in Switzerland and individuals in the military or on duty outside the country. US citizens living abroad can avoid huge penalties by filing US expat tax returns before the deadline. Working with professional American expat tax services is essential to help you file your tax returns on time and avoid scary penalties.

5. Filing US expat tax returns is no more complicated matter: With the help of US expat taxes services in Switzerland, filing your US expat tax returns is not complicated. The professional US expat tax expert will help the American citizens of Switzerland file their expat tax returns hassle-free. They will provide all the information about expat taxes, how to avoid double taxation, and the best expat tax service.

6. US tax forms expats need to fill every year: As a US citizen living in Switzerland, you will not only need to fill out Form 1040, the Income tax return Form, but has to fill an additional income form or two because you have to take foreign sourced income into account. Professional American expat tax services abroad will provide inputs about filling various US expat forms while filing your US expat tax returns.

7. American expat parents can avail tax credits even if they do not pay taxes: US expats living abroad can save money with their expat taxes through the Child tax credit. So irrespective of where US expats lives or work, the IRS provides financial help in tax refunds and credits. Also, US expat families can get their money back even if they do not pay US income taxes. The professional tax help for expats in Switzerland will figure out if you can get this refundable credit.

8. US expats may need to file US state taxes: American citizens living abroad may have to file state taxes. It is so because American expats are not automatically excluded from paying taxes if they live abroad. All the US states have their laws, and thus a good expat tax help abroad will review your state’s filing requirements. American expats must file their state tax returns if they are domiciled, have lived in the state for part of the tax year, and have earned money working there.

9. US expats need to file FBAR: The Foreign Bank Account Report- FBAR is a form every American expat may need to file if they have a certain threshold in all the foreign financial accounts at any one time during the tax year. So whether US expats have an FBAR account like savings, checking, or investments, they will need to file FBAR. It is essential for American expats living abroad to check their bank account statements monthly to see whether they need to file an FBAR or not.

Wrap up

A good expat tax help services in Switzerland help expats claim more refunds and help them file their expat taxes. So your million-dollar question of How to file a US Income Tax Return Online is answered by hiring good expat tax experts.