As the 2024 tax season unfolds, Cardinal Point Wealth Management is providing timely advice to assist U.S. expats in navigating the latest updates and deadlines. With experience in serving expats' unique cross-border tax planning needs, Cardinal Point provides essential guidance to ensure compliance and maximize tax mitigation strategies.
U.S. Expat Tax Updates for 2024
As the tax landscape evolves, U.S. expats face new regulations and deadlines that require careful attention. Cardinal Point Wealth Management highlights the following critical updates for the 2024 tax year:
Tax Deadlines: While the standard filing deadline for U.S. residents is April 15, 2024, expats benefit from an automatic extension to June 17, 2024. This extension provides additional time for expats to gather necessary documentation and file their annual returns. The deadline for paying 2023 tax liability and the first quarterly estimated payment for 2024 remains as April 15, 2024, so expats should be sure to have enough “on account” with the U.S. Treasury.
FBAR and FATCA Reporting: International taxpayers with foreign accounts receive an automatic extension to file their Foreign Bank Account Reports (FBARs) until October 15, 2024. FATCA reporting deadlines are tied to individual tax return deadlines, emphasizing the importance of timely filing and compliance.
U.S. Gift Tax Return, Form 709: The deadline for filing a gift tax return is tied to the deadline for filing the individual’s or estate income tax return. Extension must be applied for and is not automatic. It is usually a good idea to file an extension for income tax return with the April 15th payment deadline in order to extend the filing deadline for the income, gift and FBAR returns until October 15th.
Foreign Earned Income Exclusion: The 2024 Foreign Earned Income Exclusion (FEIE) has increased to $126,500, providing American citizens living abroad with enhanced opportunities to manage their worldwide income more effectively.
Standard Deduction Increases: The standard deduction for various filing statuses has increased for 2024, impacting both passive and earned income taxability. Expatriates can leverage these changes to optimize their tax strategies and minimize their tax liability.
Stimulus Checks and Compliance: U.S. expats who have yet to claim their stimulus payments (Recovery Rebate Credit) for tax years 2020-2022 can still do by filing an income tax return for 2020 no later than May 17, 2024 and for 2021 and 2022 no later than April 15, 2024. Additionally, expats behind with their U.S. tax filings may be able to utilize the IRS’s streamlined compliance procedures to become compliant without facing penalties.
Key Tax Deadlines for U.S. Expats in 2024
- April 15, 2024 – Primary Tax Payment Deadline: Final date to pay any taxes owed.
- June 17, 2024 – Automatic Extension for Expats: The deadline for filing annual returns for U.S. expatriates is June 15 or the next business day if on a weekend. Note that taxes owed should still be paid by April 15 to avoid interest.
- October 15, 2024 – Extended Filing Deadline: Deadline for those who requested an extension.
- December 15, 2024 – Final Extended Deadline for Form 1040NR: Available with a submitted extension letter to the IRS. U.S. citizens and green card holders living outside the U.S file Form 1040. Non-resident aliens would file Form 1040NR if they had any income subject to reporting in the U.S..
- October 15, 2024 – FBAR Deadline: If applicable, remember to file the Foreign Bank Account Report (FinCEN 114). The FBAR deadline is April 15, but U.S. expats automatically receive a 6-month extension, making the final deadline October 15.
These deadlines are crucial for U.S. expats to effectively manage their tax obligations. Staying informed and proactive about these dates ensures compliance and minimizes the risk of penalties.
About Cardinal Point Wealth Management:
Cardinal Point Wealth Management is a leader in cross-border financial planning and investment management. With offices in the United States and Canada, Cardinal Point offers cross-border wealth management solutions tailored to the unique needs of individuals and families living and working in the U.S. and Canada. The firm's team of experienced advisors provides personalized guidance, leveraging their ample experience in Canada-U.S. cross-border tax planning, retirement planning, investment management, and estate planning to help clients confidently achieve their financial goals.
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Website: https://cardinalpointwealth.com/
