Tax Newsletter - September 2018 No Images? Click here September Tax NewsSummer is over, school is back in session, holidays are pending, autumn colors are soon happening, cold weather is on the horizon, and your 2017 income tax returns are facing the final deadlines! October 15 is approaching and tax returns are due for those who file a tax extension with the IRS ... or even if you did not. For U.S. taxpayers with foreign financial assets, the FBAR is due with no further extensions allowed. Keep in mind that the U.S. government has the right to impose penalties for failure to file as well as late filings. If you owe any tax and have not sent an estimated payment, penalties and interest could be imposed by the IRS. TAX FILING DEADLINE OCTOBER 15What is the FBAR?
What is the FBAR? It refers to the FinCen Form 114, Report of Foreign Bank and Financial Accounts. It is a reporting form only without any tax implications. The Bank Secrecy Act of 1970 (BSA) established this report. The FBAR could affect most expats however it can also affect Americans residing in the United States. Read more about this report of what it entails, requirements, etc. Click here for all of the information. Expats can possibly convert Traditional IRA to Roth tax-free!!Since the passage of FATCA in 2010, Americans have run into roadblocks against foreign banks in establishing retirement accounts. Americans living abroad can continue to contribute to their retirement in U.S. based accounts into IRA accounts. However..... read further... Upcoming events in Brussels and ParisMark your calendarsFree Event - Expats Financial Forum in BrusselsWhat: US Expats Financial Forum When: September 26th 2018 Where: ING Bruxelles Marnix, 24 Rue Marnix, 1000 Brussels, Belgium As part of the Expat Information Fair organized by ING, Sponsored by the American Club of Brussels, join us to meet a panel of experts in US Social Security, financial planning, US taxes and Expats banking and insurance. Meet the experts participating and sign up here and click for more information.... Contact us to get signup! Bloom Where You’re PlantedBloom Where You're Planted is a full-day orientation to living in Paris for English-speaking expats from around the world. Bloom is designed to create opportunities for meaningful connections with others and provide valuable insights that will enable individuals and families to grow and thrive in Paris. The event is organized by the American Church of Paris for all expats. If you are living in Paris, or visiting, attend this informative event on Saturday, October 6. See more details here. Mir Taxes is proud to be one of the sponsors of this information expat event. We will be appearing in the Exhibition Hall from noon to 2:00 pm. Come and visit us! Tax in the NewsNews links for other information that may be of interest...Should You Convert Your Balance To A Roth IRA?If you have accumulated a large balance in a traditional IRA, now may be an ideal time to convert some or all of it to a Roth IRA. The recently enacted Tax Cuts and Jobs Act (TCJA) reduces individual income tax rates through 2025, lowering the cost of conversion. When you do a Roth conversion, you are subject to tax on some or all of the amount you convert, so it could be cheaper to do it now, while tax rates are more favorable. But, why choose a Roth in the first place? IRS Final Regulations Clarify Charitable Contribution Substantiation RequirementsTax deductions for charitable contributions require the satisfaction of certain substantiation requirements. Generally, any charitable gift of money must be evidenced by either a bank record (a bank statement, electronic fund transfer receipt, cancelled check or credit card statement) or a written communication from the donee organization showing the name of the donee and the date and amount of the gift. New Guidance Clarifies Exemption Amount for Qualifying Relative Gross Income TestUnder the TCJA, the personal and dependent exemption amount for 2018-2025 is zero. This provision creates a potential snag for the qualifying relative gross income test, which requires a potential dependent to have gross income that is less than the exemption amount. Notice 2018-70 explains that the zero exemption amount does not apply to the gross income limitation; instead, the limitation is $4,150 (adjusted for inflation). 10 tax changes you need to know for 2018A slew of updates from the IRS and major tax reform passed by Congress could significantly alter your situation for the 2018 tax year. The IRS unveils its changes each year, including cost-of-living adjustments for retirement savings and inflation changes for certain tax provisions. Those updates, coupled with new rules passed by Congress through the Tax Cuts and Jobs Act, could result in a big difference in how much you owe. Here are some of the most prominent changes that could affect you. Highlights of Tax Cuts and Jobs Act of 2017 Haven't filed your taxes in years? Time to catch up before getting caught? If you haven't filed your taxes in years, Mir Taxes can assist you with the process through the Streamlined Procedures Program of the IRS ... and at reasonable prices. Contact Mir Taxes for more information. Need a tax pro to get a tax return done or answer a question? Need to get your 2017 tax return completed? Get your FBAR filed? Or have any tax questions? Please feel free to contact us for any assistance. |