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7 tax strategies that you and your family must know while working and living across the United States. How many of the seven do you know?
１． U.S. citizens and permanent residents are taxed on their worldwide income, no matter where they are. The United States is a country that taxes based on residence, but citizens and permanent residents are considered residents in the United States for tax purposes, even if they are not in the United States. While you have these rights, your U.S. tax obligations will continue, with a few exceptions.
２． Compared to other countries, the United States is a country that favors residents very much when it comes to gifts and inheritances, and gifts and inheritances made while a resident is often tax-free. If you are moving from country to country, you should consider taking advantage of this preferential situation.
３． Gifts and inheritances from non-U.S. residents must be reported to the IRS, and failure to do so is subject to significant penalties. Please note that you may be taxed depending on whether the assets you receive are outside or in the United States. Conversely, non-fixed holdings in the U.S. from non-residents are exempt from U.S. gift tax.
４．U. S. citizens, lawful permanent residents, and other U.S. residents for tax purposes are required to report financial accounts abroad. It is FORM8938 and FBAR. If you fail to do this, or if you have an unreported account, you will have a big problem if you do not report it correctly using remedies (DFBAR, Streamlined Procedures, Voluntary Disclosure) as soon as possible.
５．When investing in a foreign company outside the U.S., the following points are to keep in mind: (1) Do you have 10% or more ownership? Or, (2) Is the overseas company the main company with passive income? Be. You need to consult with a CPA in advance who is likely to fall into one of these categories.
６．If you renounce citizenship or permanent residency, you risk being subject to U.S. exit tax. Therefore, taxpayers who plan to abandon their products need to prepare at least two or three years in advance. If you have been a permanent resident for a long time and your personal net worth exceeds $2 million, be careful, but you are not necessarily taxed. US citizen's net worth limit is also $2 million.
７．The rules affected by the Social Security benefits are WEP (Windfall Policy) and the Social Security Agreement with the United States in the country of residence. WEP reduces one's Social Security benefits. Permanent residents will not be able to receive benefits if they live in a country that does not have a social security agreement with the U.S. US citizens can continue to receive the benefits.