US tax preparation for Americans in Saudi Arabia

The IRS does not publish a single official exchange rate. Instead, it accepts any posted exchange rate that is used consistently. For most expats converting a foreign salary or pension to USD on Form 1040, the IRS yearly average currency exchange rates table on irs.gov is the most widely accepted source. For most expat...

IRS Form 8288-B is an application for a withholding certificate that allows a foreign seller of US real property to reduce or eliminate the FIRPTA withholding amount before closing. Here is the problem it solves. Under FIRPTA, the buyer must withhold a percentage of the gross sales price – not the gain – and remit it to the ...

The foreign tax credit can offset AMT liability, but a separate AMT-specific FTC calculation applies under IRC Section 59, limiting the credit based on your alternative minimum taxable income rather than your regular taxable income. The AMT and foreign tax credit interact through a parallel calculation system. ...

The foreign tax credit limitation caps the US tax credit you can claim for foreign taxes paid to the amount of US tax attributable to your foreign-source income. The limitation is calculated separately for each category of income under IRC Section 904, using ...

California taxes nonresidents on all income derived from California sources, and the state applies the same graduated rate schedule used for residents – with the top marginal rate reaching 13.3%, the highest of any US state. Nonresidents file Form 540NR for tax year 2025. The following four points summarize how Ca...

Previously taxed earnings and profits, or PTEP, are amounts already included in a US shareholder's gross income that can be distributed tax-free when repatriated from a controlled foreign corporation. The exclusion is governed by ...