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July 17, 2017

In general, a foreign person is subject to U.S. tax on U.S. source income. Foreign "persons" include nonresident aliens, foreign partnerships, foreign corporations, foreign estates, and foreign trusts. The tax generally must be withheld from the payment made to the fore...

July 10, 2017

A recent fact-sheet issued by the IRS contains rules regarding self-employment tax for U.S. taxpayers working abroad that you may find helpful. If you have become an independent contractor, either for a new employer or a foreign employer with no ties to the U.S., you ma...

June 19, 2017

Having dependent children is rewarding, but often costly. Among the many expenses new parents incur is child care. The federal government has enacted a tax credit designed to help child care more affordable for families.

Child and dependent care credit. You are eligible...

June 12, 2017

The self-employment tax is a social security and Medicare tax which must be paid if your net earnings from self-employment are at least $400 for the tax year. For 2017, the maximum amount of your net earnings from self-employment that are subject to the social security...

May 15, 2017

The distinction between resident aliens and nonresident aliens is crucial because resident aliens, like U.S. citizens, are taxed on worldwide income, whereas nonresident aliens are taxed only on U.S. source income. Your status as a nonresident alien individual affords y...

April 17, 2017

The IRS has issued final regulations providing rules for determining whether income is either (1) derived from sources within a U.S. possession or territory, or (2) effectively connected with the conduct of a trade or business within a possession or territory (territory...

April 10, 2017

Medical Expense Deduction for Convention Costs

Anyone with a chronic illness or anyone who has a child with a chronic illness knows the frustration of trying to find answers that are many times beyond the knowledge of the physician treating their illness. The encouraging...

March 16, 2017

You probably know that you can get an income tax deduction for a gift to a charity if you itemize your deductions. But there is a lot more to charitable giving. For example, you may be able to indirectly benefit a family member and a charity at the same time and still g...

March 13, 2017

The IRS has adopted final regulations that provide guidance on the reporting requirements imposed by the Hiring Incentives to Restore Employment (HIRE) Act for “specified foreign financial assets.” The regulations specifically address the requirement to attach a stateme...

February 14, 2017

Taxpayers have long been required by the Bank Secrecy Act to report certain foreign accounts. Now, there is a new reporting requirement in the Foreign Account Tax Compliance Act of 2010. Since tax years starting after March 18, 2010, however, the IRS has required certai...

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