A number of decisions go into choosing a career path, especially if you want to work overseas for a private organization. Sometimes, even the best assumptions of an expat life don’t materialize. Your money, however, is a cut and dried situation, and before you go toodling off to Timbuktoo, you’d be smart to talk to experts in the field so you don’t lose the exemptions that benefit you.
“It could be the diffrence of $20,000,” said Amy Johnson, CPA and Tax Manager at Palazzo & Company, an international accounting firm specializing in “expat” taxes.
Lisa Palazzo started the firm after returning overseas as an expat. She indentified the pain points for expats when preparing their taxes, as well as she became an expert in prepping clients before they leave the United States.
Expats, for example, enjoy certain tax breaks, but only if they comply with IRS rules, which can change from year to year.
“Knowing how often you can go back and forth from the United States is just one of many examples,” Johnson said.
Other issues can center around owning a home in the United States while working overseas, as well as taxes the foreign country might levy against you.
“There is a lot that goes into tax returns for expats,” Palazzo added.
Palazzo also recommended that spouses who follow their loved ones overseas should know the rules for working outside the country before they go.
“There is a right way and a wrong way to do things,” Johnson added.
Expats from the United States live all over the world, but mostly fall into two age catergories according to a 2021 survey by Expat-Assurance: 25-34 years of age, and over 65. More American expats live in Mexico (27%) than anywhere else, followed by Canada, the UK and Germany.
Palazzo & Company has served expats for decades, and today has clients all over the world. To reach them, call (866) 272-9224 or see palazzotax.com