Mel Whitney
Articles
Non-US Citizen With US Income Subject to Withholding Do Not Ignore Form 1042-S
1042-S - What Is It and Who Needs to Complete It? This form has to be completed by a Withholding Agent - this obscure term generally refers to bank or broker that pays passive income and must w...
IRSN (Internal Revenue Service Number) - What It Is, Who Needs It and Who Should Avoid It.
Hundreds of thousands of American citizens by birth live abroad without a Social Security number. Many of them have recently discovered that they have U.S. tax compliance obligations. Most often this news is delivered by a foreign bank that has custody of their money, through a sca...
Tax Credits for Education Expenses - The Lifetime Learning Credit (LTC)
This article will explain the Lifetime Learning Credit, rules for who is eligible for the credit, what expenses qualify, the value of the credit, limitations on claiming the credit, and how the credit is claimed on your Form 1040 (including related tax schedules). Eligibility For the Lifetime Learning Credit ...
Which Financial Fees Are Tax Deductible?
Legal and financial fees are expenses we don’t choose to pay. Those payments are necessary expenses; therefore it seems logical to deduct them on your tax return. However, only certain types of financial and legal fees are deductible. 1. Legal fees related to producing or collecting taxable income or getting tax ...
How US Expats Living in Low-Tax Countries Can Reduce Their US Tax Bill
Americans who live and work in low-tax countries and earn over the Foreign Earned Income Exclusion are likely to owe tax due because their US tax obligations exceed the taxes they pay locally. There are, however, strategies that you can take to reduce or even eliminated the US tax bill under such circumstances. Below you will find 10 di...
How to Fix Common FBAR Mistakes
There are currently four ways the IRS allows FBAR mistakes to be corrected. It is only permitted to participate in the disclosure programs if the assets in the account(s) came from a source that is legal (not from illegal activities), and assuming the Internal Revenue Service is not currently aware of the violation. 1. Amend the FBAR a...