Who has to file U.S. tax return?
If you are a U.S. citizen or green card holder living in the United States or in foreign country(Czech Republic, Slovakia...), you are subject to the U.S. income tax laws.
When Americans have to file U.S. tax return?
Deadline to file and pay your taxes is generally 15th of April. You qualify for automatic extension 2 months to file your tax return and pay your tax if you residing abroad. Deadline is than generally 15th of June.
However interest will be charged from 15th of April on any unpaid tax.
Why Americans abroad have to file U.S. Tax Return?
1) It's the law - If you are a U.S. citizen, or a green card holder you must report income from all sources within and outside of the U.S. Whether or not you end up paying tax on that income is irrelevant - the income itself must be reported.
2) If you fail to file you may be liable for penalties. If you do owe money to the IRS, you are liable to pay penalties and interest.
3) U.S. government is actively exploring the option of refusing renewal of US passports for delinquent taxpayers.
4) US government has started to actively pursue its citizens who have unreported foreign bank accounts. FBAR, FATCA. Filling FBAR or FATCA, presumes you filled all your past due tax returns.
5) The government is actively working with foreign countries that have US expats in order to secure information about them and increase tax collection.
The good news is that most expats don't end up paying any taxes to the IRS. You also most likely qualify for the foreign income exclusion, which lets you subtract roughly $100,000 from your foreign earned income.
Which documents collect for US tax return?
In case you are employed
„Potvrzení o zdanitelných príjmech ze závislé činnosti“ from all your Czech employers
In case you work on „živnost“ - self employed
Your czech tax return and The Certificate of coverage for social security purposes (CZ/USA 1 Form)
In case you have income from US:
1099‘s documents based on type of income (interest, dividends, IRA distribution, social security benefits, unemployment benefits etc.), W2 in case of employment, possibly other documents based on your individual case.
Other information needed:
your SSN, marital/filling status, when you entered to czech republic, when did you file last tax return, prefereably copy of your last tax return, etc
How our cooperation work?
- After you contacting us, we discuss over emails or phone your situation and confirm documents needed.
- You email us scanned documents, we prepare tax return.
- We meet to discuss your return, you sign the return and give us original of scanned documents
- We file the tax return
- Income tax returns for employment income from abroad 2500CZK
- Income tax return for „živnost“/self employed 3000CZK
- Income tax return with income from US 3000 – 5000CZK (depends on complexity)
- FBAR 500CZK