When you relocate to a new home in an overseas country, that move can impact your taxes. As with any questions about taxes, it’s best to consult about your specific situation with a tax accountant, tax attorney, the IRS, or an accounting firm that specializes in providing services to Americans overseas.
If you move within the United States, you can often deduct moving expenses from your taxes. However, the tax treatment may be different, or you may have additional deductions available to you.
The federal tax return will have an automatic extension to June 15, although you will still need to pay taxes due by April 15. You can request an additional extension to October 15 using IRS form 4868.
Become familiar with certain tax provisions to save on taxes. For instance, you may be able to claim the foreign earned income exclusion, claim a foreign housing exclusion, or claim a foreign tax credit for foreign income taxes.
You may need to file additional paperwork to the IRS if you have a foreign pension plan, foreign investment account, or foreign trust.
If you decide to keep your property in the United States and rent it out, you will need to report your rental income, and if you are of retirement age and collecting Social Security, you can continue to receive those benefits in many countries.
Again, the best method of assessing your tax risks by moving overseas is to consult with a professional tax accountant or tax attorney. But, your personal Moving Concierge provided to you by Global Van Lines can help identify areas you need to explore. We are here to help you every step of the way.