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US expats worried about 2013 tax hikes
US expats worried about 2013 tax hikes
| Published: | 16 Nov at 9 AM |
US tax planning service Greenback Expat Tax Services has published a survey that suggests the majority of Americans living and working abroad do not think that they should be required to file expat taxes in the US. Of those who responded to the survey 59 per cent said they did not feel that expat taxes were appropriate.
The new study comes ahead of changes to the US tax system that will come into force next year. Current plans by the Obama administration could see the price of Medicare increase by 3.8 per cent and the price of Medicaid go up by 2.9 per cent. Expats could also be hit by a proposed rise in capital gains from 15 per cent to 20 per cent.
Personal income tax has also been earmarked for a hike. Greenback Expat Tax Services president, David McKeegan, said the latest figures indicated that many expats did not feel that the US government was representing them adequately and that there were concerns about the proposed tax hikes.
Mr McKeegan added that it was not time for US expats to panic as there are a number of ways to claim deductions and credits including Foreign Earned Income Exclusion. The IRS created FEIE as a way of protecting expats from having to pay dual tax.
Mr McKeegan explained that a US expat earning money in a foreign country is subject to the same taxes as someone living and working in the US. However there are qualifiers in place which mean US expats are exempt from having to hand over tax in both countries.
The new study comes ahead of changes to the US tax system that will come into force next year. Current plans by the Obama administration could see the price of Medicare increase by 3.8 per cent and the price of Medicaid go up by 2.9 per cent. Expats could also be hit by a proposed rise in capital gains from 15 per cent to 20 per cent.
Personal income tax has also been earmarked for a hike. Greenback Expat Tax Services president, David McKeegan, said the latest figures indicated that many expats did not feel that the US government was representing them adequately and that there were concerns about the proposed tax hikes.
Mr McKeegan added that it was not time for US expats to panic as there are a number of ways to claim deductions and credits including Foreign Earned Income Exclusion. The IRS created FEIE as a way of protecting expats from having to pay dual tax.
Mr McKeegan explained that a US expat earning money in a foreign country is subject to the same taxes as someone living and working in the US. However there are qualifiers in place which mean US expats are exempt from having to hand over tax in both countries.
