Embarking on a journey as an expatriate is an adventure filled with new experiences, cultures, and challenges. Amidst the excitement, it's essential to stay attuned to the ever-evolving landscape of tax regulations, ensuring that you navigate the financial aspects of your expatriate life with confidence and compliance.
As we usher in the year 2024, a host of tax updates await expats around the globe. These changes can have a significant impact on your financial strategies, presenting both challenges and opportunities. In this blog post, we delve into the intricacies of the latest expat tax updates, shedding light on the key changes that will shape your financial landscape in the coming year.
1. You will be able to exclude up to $120,000 of your income from being taxed in the US with the Foreign Earned Income Exclusion.
The IRS announced a substantial increase in the Foreign Earned Income Exclusion, now set at $120,000!
This means that if you’re a U.S. citizen, Green Card holder, or resident living and working abroad, you can exclude up to $120,000 of your foreign-earned income from your U.S. federal income tax for tax year 2023. This is if you use the Foreign Earned Income Exclusion method.
This significant change is great news for expats and international workers, as it allows you to keep more of your hard-earned money while living outside the United States.
2. This (2024) is the FINAL year to claim your uncollected thousands of dollars of Stimulus Payments!
The year 2024 marks the final opportunity to claim stimulus payments that you may not have previously received or claimed. These payments, amounting to thousands of dollars per tax filer, come with additional refundable credits per qualifying dependent.
The deadline for claiming these payments is June 18, 2024; all it takes is filing your US Tax Return. If you've never filed a US Tax return before, fret not! You can efficiently catch up by utilizing the amnesty process known as the Streamlined Foreign Offshore Procedure, a streamlined and accessible method to ensure you receive the funds you are entitled to and file your late tax returns interest and penalty-free.
Don't miss out on this chance to secure your financial well-being—file today and make 2024 the year you claim what is rightfully yours.
3. The Child Tax Credit you can claim is increasing to $1,600.
Exciting news for tax filers with qualifying dependents under the age of 17: the refundable Additional Child Tax Credit is on the rise! This year, the credit has increased to $1600 per qualifying dependent, marking a $100 increment from the previous year. To be eligible for this boost, as a tax filer, you generally need to have more than $2,500 of earned income. Additionally, your dependent child must possess a US Social Security Number. It's a welcomed enhancement that not only puts more money back in the pockets of eligible families but also serves as an incentive for diligent tax filing. Make sure to take advantage of this increased credit by meeting the criteria and securing the financial benefits it offers to qualified households.
It's crucial to emphasize that filing taxes is not synonymous with paying taxes, and this holds true for many American expats. Contrary to common misconceptions, expatriates often qualify for refunds when they diligently file their tax returns. By navigating the intricacies of the tax system and completing the necessary documentation, expats can unlock potential refunds that are rightfully theirs. So, for those living abroad, filing taxes isn't just a financial obligation—it's an opportunity to claim refunds and optimize their financial situation. As the 2024 deadline approaches for stimulus payments, expats are encouraged to seize this chance to not only fulfill their tax responsibilities but also to ensure they receive the refunds they may be entitled to.
In conclusion, staying informed about tax updates is crucial for expatriates, and the year 2024 brings some significant changes that can impact your financial situation. Whether you're navigating new regulations or seeking to maximize your eligible benefits, it's essential to proactively address your tax obligations.
To ensure you make the most of these updates and claim all the benefits you qualify for, we invite you to take the next step toward financial peace of mind. Schedule an online consultation through our calendar system, to receive personalized guidance tailored to your unique circumstances. Don't miss out on potential opportunities or risk overlooking crucial deadlines; let us help you navigate the complexities of expat taxation in 2024.
Take control of your expat tax journey in 2024: schedule your consultation or get in touch with us today if you have specific questions or concerns and need a more direct approach. At Sabalier Law, we assist you in understanding the nuances of the new tax landscape, making the process smoother and more beneficial for you.