“Retirees living abroad have to take special care with their tax returns. If you forget to check it off this box on Schedule B when you live overseas, it could mean big trouble with the IRS.”
It’s something you don’t hear discussed often, but there are people who like to hide money overseas. Others just love the idea of retiring to a European country where they can live out a life-long dream. However, according to a recent article from CNBC titled “How to retire overseas and avoid IRS penalties,” Congress enacted the Foreign Account Tax Compliance Act, or FATCA, in 2010 expressly to increase tax compliance by Americans, who keep financial assets outside of the U.S.
FATCA works through what is called “dual reporting.” Other countries agree to report on assets owned by American account holders. Those living outside of the U.S. must report honestly what they have in those foreign bank accounts every year, when they file their income taxes.
For people who are not big-time tax evaders hiding large amounts of money offshore and make an honest mistake, it can become a nightmare.
One client forgot to tell his accountant about an account with $3,500 that he owned in a foreign bank. The penalties were stiff. An attorney who was experienced in tax situations faced by people living outside of the U.S. had to be retained.
Here’s the thing: most automated tax preparation programs default to answering “No” on Schedule B, where the person filling out the form is asked if they have a bank account in a foreign country.
Who has to file? All Americans living overseas are required to file a tax return. It doesn’t matter if you pay foreign taxes, or even if the U.S. has a tax treaty with the country.
In addition to a 1040 form, you must file additional forms for the foreign earned income exclusion or the foreign tax credit form.
The only exception might be if you receive Social Security benefits and have no other income sources. That is a “might,” though—check with your CPA!
Some people choose to retire outside of the U.S., in the hope of keeping healthcare costs manageable. However, any gains from having lower healthcare costs would evaporate quickly in the face of tax penalties from the IRS.
Be certain to work with a CPA who has experience in overseas tax requirements and FBAR rules (Report of Foreign Bank and Financial Accounts).
Remember that the form is very specific: if you have any overseas accounts, you must report them to the IRS. It doesn’t matter how large or small they are.
Reference: CNBC (Aug. 25, 2018) “How to retire overseas and avoid IRS penalties”
“居住在國外的退休人員必須特別注意他們的納稅申報表。如果你在海外生活時忘記在附表B的這個方框上打勾，這可能意味著美國國稅局 (IRS) 會來找我大麻煩。”
這是你經常聽不到的事情，但有些人喜歡把錢隱藏在海外。其他人只是喜歡退休到歐洲國家的想法，在那裡他們可以如夢中生活。但是，根據CNBC最近的一篇文章標題 “How to retire overseas and avoid IRS penalties” (如何在海外退休並避免國稅局的處罰) 國會於2010年頒布了“外國賬戶稅收合規法案”（FATCA），明確提高美國人的稅收合規性，美國人將金融資產留在美國境外。
FATCA通過所謂的“雙重報告”來實現。其他國家同意報告關於美國賬戶持有人擁有的資產。那些生活在美國以外的人必須每年在他們提交他们的所得稅時，必須如實地報告他們在這些外國銀行帳戶中所擁有的東西。
對於那些沒有大量逃稅的人來說，在海外隱藏大量資金並犯下誠實的錯誤，這可能會成為一場噩夢。
一位客戶忘了告訴他的會計師他在國外銀行擁有3,500美元的賬戶。處罰是很嚴厲的。在美國以外居住的人想了解稅務情況就必须雇用經驗豐富的律師。
事情就是這樣：稅務表格附件B會問納稅人他們是否在國外擁有銀行賬戶，大多數報稅軟件會自動在附表B中回答“否”。
誰必須申報？所有居住在海外的美國人都必須提交納稅申報表。如果您支付外國稅，或者即使美國與該國簽訂了稅收協定也沒有豁免。
除了1040表格外，您還必須提交其他表格，以獲取外國收入減免 (Foreign earned income exclusion) 或外國稅收抵免 (Foreign tax credit) 。
唯一的例外可能是您獲得社會保障福利並且沒有其他收入來源。要注意這只是“可能”，您需要跟您的註冊會計師查詢！
有些人選擇在美國境外退休，以期降低醫療成本。然而，美國國稅局的稅收罰款，可以抵消較低醫療成本的任何得益。
務必與具有海外稅收要求和FBAR規則經驗的註冊會計師（外國銀行和金融賬戶報告）合作。
請記住，表格是非常具體的：如果您有任何海外帳戶，您必須向美國國稅局報告。無論它們是大或是小都要申報。
參考: CNBC (Aug. 25, 2018) “How to retire overseas and avoid IRS penalties”
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