Expat Tax Services and International Taxation
Handling expatriate taxation can be daunting. Our specialized expat tax services offer you a knowledgeable partner who comprehends the details of international tax regulations, helping you remain compliant and optimize your returns, no matter where you are globally.
Why choose us?
US tax expertise
You deserve top-notch service, and our IRS Enrolled Agents provide just that. They are specialists in US expat tax preparation, ensuring your taxes are handled accurately. We focus exclusively on expat tax services and we excel in it.
In-person assistance
Our Sofia office is one of the few in Bulgaria offering in-person tax preparation services specifically for US expats. We speak English, Bulgarian, and Russian languages. Come visit us and experience the high standard of US customer service quality.
Affordable
Our primary advantage is that our IRS-certified tax experts are based in the USA and Bulgaria, Europe. This enables us to offer you affordable and top-quality service. Flat-fee pricing of $400 applies to most of the returns we complete for clients.
Easy
We also offer an easy online process to help you file your taxes on time and provide solutions for late filers as well. Our expert expat tax services are designed to guide you through every step and exceed your expectations.
Our process
Prepare Your Tax Documents And Book Your Appointment
Fill out our questionnaire and upload your current tax documents and prior year tax return. Book your virtual or in person appointment with us (phone/Zoom/Viber).
At Your In-person/Virtual Appointment
We will give you a call/meet you to discuss your tax filing requirements, address all of your questions, and provide you best customer service. Plan 30 minutes or more for your appointment.
Tax Filing
Once we prepare your tax return we will send it to you for signature and approval. After we file your tax return to IRS/State you will receive a link to our secure portal for your tax returns and a detailed message with all the necessary information.
Comprehensive US Expat Tax Services
Types of Expat Tax Filings We Specialize In:
US Expats Living in Bulgaria/ Overseas
- Foreign Tax Credit
- Foreign Earned Income Exclusion
- Reporting of foreign assets and investments
- Amending incorrectly filed returns
- Streamlined procedures
- Forms 5471, 5472, 3520, 3520-A, 8865, 8938, and others
Non-Residents and Visa Holders
- Tax returns for visa holders
- Dual status returns
- Reporting foreign gifts or transfers
- Application of tax treaties
International Businesses
- US company registration
- EIN & ITIN applications
- US tax filings
- Payroll setup for employees
- Disclosure and filing requirements for US citizens doing business overseas
Prices
Expat Tax Return Package
$400
- Form 1040
- Form 1116
- Form 2555
- All Standard Schedules A-E
- Up to three Schedule K-1s
- Bank and brokerage transactions
Expat Small Business Tax Return Preparation
$500
We prepare your U.S. state income tax return – 1065, 1120, 1120-S, and K-1s, including the most common schedules and forms.
Expat Tax Consultation
$150
Looking for Expat Tax Advice? Give us a call. You pay for the service at the time of the consultation. It can be in person, by phone, or online.
Why Are You Required to Pay Taxes Even If You Live Abroad?
US taxes are based on citizenship, not residence. This means that even if you live abroad, you’re still subject to IRS taxation. The only way to avoid this obligation is to renounce your citizenship, which can be costly and is generally not advisable.
Neglecting to file your taxes as required can result in severe penalties, including fines and interest on any unpaid taxes.
What Taxes Will I Have to Pay If I Work Abroad?
As a US citizen, you are taxed on your global income. However, due to tax treaties and specific expat tax benefits, most Americans living and working abroad often don’t end up owing any taxes. Keep in mind, though, that regardless of whether you owe taxes, you are still required to file an annual tax return.
While there is no general tax exemption for Americans living abroad, the IRS offers several benefits to help reduce your tax liability. These include:
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Foreign Earned Income Exclusion (FEIE): This allows you to exclude a specific amount of foreign-earned income from US taxation. The exclusion limit for 2024 is $126,500 per person, and it covers salaries, wages, and self-employment income. The exclusion amount may vary each year.
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Foreign Tax Credit: This provides a dollar-for-dollar credit for income taxes paid to a foreign government. For instance, if you paid $10,000 in foreign taxes, you could reduce your US tax liability by the same amount, helping to prevent double taxation.
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Foreign Housing Deduction (or Exclusion): If you rent a home abroad, the IRS permits you to deduct certain housing expenses from your US taxes.
By utilizing these benefits, many expats can eliminate their US tax obligations entirely.
Consequences for Failing to Disclose
We often receive inquiries about how to avoid or address penalties for failing to disclose foreign assets. Many US tax residents are not aware of the intricate compliance rules involved. If you need assistance with these issues, please reach out to us. We serve clients across all 50 states and internationally, so let us know how we can support you.
How much do you charge?
Our pricing is straightforward with no hidden costs. We offer a flat fee of $400 for most US expat returns we handle. Think you can’t afford the best? Think again. Our transparent pricing covers all standard expat forms, ensuring you get the best value without unexpected charges.
How long does it take to get my taxes finished?
Most tax returns can be wrapped up in your first appointment. Occasionally, we might need some extra information from you and send you off to gather it. Once you have that information, you can drop it off depending on our availability, or we can schedule another quick appointment to finalize everything. If your tax situation is more complex, like involving businesses or multiple rental properties, the process might take longer.
What do I need to bring to a tax appointment?
Identification: Photo ID (driver’s license, passport, etc.) and Social Security cards (or ITIN assignment letters) for yourself, your spouse (if filing jointly), and any dependents.
Prior year tax returns: If you have them, bring your federal and state returns from last year.
Income documentation: Wage and earning statements (Forms W-2, 1099-G, etc.) from all employers and any other income sources.
Deduction documentation: Receipts, canceled checks, or other records for deductions you plan to claim (charitable donations, medical expenses, etc.).
What Tax Forms Do Expats Have to Use?
Do you efile?
Yes! We clearly understand the advantages of electronic filing. Here are some key points to mention:
- Faster processing: E-filing leads to faster return processing compared to mailing paper forms.
- Reduced errors: Electronic filing significantly reduces errors compared to manual data entry from mailed returns.
These benefits can save you time and frustration during tax season.
What should I do if I receive a notice from the IRS or the State?
Act quickly! Bring the notice to us ASAP.
We will:
- Review it for accuracy.
- Explain how to respond (including deadlines).
- Advise on fees to handle the response for you (optional).
Don’t ignore these notices!
- Common ones (like CP2000) suggest tax return changes and can lead to penalties if unanswered.
- You typically have 30 days to respond.
Considering our help?
- We’ll need signed Power of Attorney documents, limited to your specific tax issue and timeframe.
- These documents generally don’t allow us to sign anything for you.
- If you want us to sign specific documents, we’ll need additional authorization.
Can I just upload or mail in my tax information?
Yes! However, to accurately prepare your taxes, we will still ask that you complete our annual questionnaire (to make sure we do not miss anything and to honor our due diligence requirements with the IRS), and we will ask that you sign our engagement letter.
I filed my tax return on XX date, I still have not received my refund.
- Check for an offset: Did the IRS use your refund to pay off another debt? Call the IRS debt offset department if so (phone number provided).
- Wait for processing: Has it been more than 3 weeks since your return was accepted? If yes, and you confirmed acceptance, call the IRS for further assistance (800-829-4477).
- Verify your bank details: Did you enter the correct address, routing number, and account number for direct deposit? Double-check and confirm with your bank if unsure.
- State vs. Federal Refunds: Refunds are separate. They do not come together. Federal refunds are generally received within 21 days of acceptance and State returns vary by state but most common within 14 days of acceptance.
Can you file for states other than Illinois?
Can I deduct medical expenses?
Each year, the IRS allows you to deduct unreimbursed expenses for qualifying medical expenses if they exceed 7.5% of your adjusted gross income. These expenses can come from:
- Preventative care
- Medical treatments
- Surgeries
- Dental and vision care
- Psychologist and psychiatrist visits
- Prescription medications
- Prescription appliances (glasses or contacts, false teeth, hearing aids, etc.)
- Travel expenses paid to receive this medical care (mileage, bus fare, and parking fees)
How much you can deduct depends on your income and whether you itemize your deductions.
How long do you keep my filed information on file?
We retain your tax information for as long as your account is active, or as needed to provide you services. We may retain or use your information as necessary to comply with our policies, legal obligations, resolve disputes, and enforce our agreements. The IRS requires us to retain filed tax returns for at least three years.
Where I can access more information about your privacy policy?
Please see our entire Privacy Policy for more detailed answers to your questions.
What is the best way to communicate with my preparer?
Reach us through the administrative staff during busy times. Tax preparers are often booked and might not be able to answer calls directly. Email or schedule a free 15-minute appointment for detailed questions. The staff can get answers from preparers quickly if needed. For complex questions, email or schedule a short appointment.
When is my return filed?
We’ll file your return electronically once we have everything:
- All necessary documents, including signed agreements and forms.
- Proof of refundable tax credits (like EITC or Child Tax Credit).
- Full payment for your tax prep services.
How long does it take to get my refund?
Can I get an electronic copy of my tax return?
How long should I keep my tax records?
- Generally keep records for 4 years: This covers most audits by the IRS (3 years) and California Franchise Tax Board (4 years). They can go back further for errors or suspected fraud.
- Depreciation and asset records: Keep for 4 years after disposal. This applies to items you’ve depreciated (like cars) and assets (like your house).
- Net operating loss and credit paperwork: Keep for 4 years after claiming. Maintain documentation related to these for 4 years after the year you claim them on your tax return.
- Unlimited audit for fraud: If the IRS or Franchise Tax Board suspect fraud, they can audit for any past year.
What if I cannot pay all that I owe in taxes?
Can you help me file back taxes?
What kind of deductions do I qualify for?
How can I reduce my tax bill?
What if I receive or find another tax form after I filed my return?
If you’ve already e-filed or mailed your return to the IRS or state taxing authority, you’ll need to complete an amended return. We can assist you in filing Form 1040x. Additional fees may apply.