H&R Block

January 16, 2024

• Final installment of 2023 estimated tax (Form 1040-ES)

April 15, 2024

• Due date to file 2023 income tax return (Form 1040) and FBAR(FinCEN 114).
• For an automatic 6-month extension of time to file 2023 income tax return (Form 1040) by October 15, 2024, file Form 4868.
• First installment of 2024 estimated tax (Form 1040-ES)

June 17, 2024

• Due date (including 2-month automatic extension) for U.S. person living abroad to file 2023 income tax return (Form 1040). For an automatic 4-month extension of time to file the income tax return (Form 1040) by October 15, 2024, file Form 4868.
• Second installment of 2024 estimated tax (Form 1040-ES)

September 16, 2024

• Third installment of 2024 estimated tax (Form 1040-ES)

October 15, 2024

• If you have an automatic 4-month extension to file your 2023 income tax return, file Form 1040. For an additional 2-month extension of time to file the tax return by December 16, 2024, file Form 2350.

December 16, 2024

• If you have an additional 2-month extension to file your 2023 income tax return, file form 1040.

January 15, 2025

• Final installment of 2024 estimated tax (Form 1040-ES)

If you are a U.S. citizen or resident alien, your worldwide income generally is subject to U.S. income tax, regardless of where you are living. Also, you are subject to the same income tax filing requirements that apply to U.S. citizens or resident aliens living in the U.S.

Taxable income is income you receive in the form of money, goods, property, and services that is not exempt from tax. This include, but not limited to, salary and wages, business income, financial income (interest, dividend, capital gain from trading activities, etc.), rental income, profit from selling a property, social security tax benefits (if you have other income), certain pension income, etc.

• Foreign Tax Credit (Form 1116)
  You can take either a credit or a deduction for income taxes paid to a foreign country. Taken as a deduction, foreign income taxes reduce your taxable income. Taken as a credit, foreign income taxes reduce your tax liability. There is no rule to determine whether it is to your advantage to take a deduction or a credit for foreign income taxes. In most cases, it is to your advantage to take foreign income taxes as a tax credit, which you subtract directly from your U.S. tax liability rather than as a deduction in figuring taxable income. Also, you cannot take a foreign tax credit or deduction for taxes on income you can exclude, such as foreign earned income exclusion.
  
  
• Foreign Earned Income Exclusion (Form 2555)
  If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to certain amount (i.e. $120,000 of your foreign earnings for 2023). In addition, you can exclude or deduct certain foreign housing amounts. You also may be entitled to exclude from income the value of meals and lodging provided to you by your employer. To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must meet all three of the following requirements.
  
  
  1. Your tax home must be in a foreign country.
  2. You must have foreign earned income.
  3. You must be one of the following.
     • A U.S. citizen who is a bona fide resident or national of a foreign country or countries for an uninterrupted period that includes an entire tax year.
     • A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.
     • A U.S. citizen or a U.S. resident alien who is physically present in an foreign country or countries for at least 330 full days during any period of 12 consecutive months. For purpose of the foreign earned income exclusion, U.S. Government employee paid by a U.S. agency that assigned you to a foreign government to perform specific services for which the agency is reimbursed by the foreign government, your pay is from the U.S. Government and does not qualify for exclusion or deduction.

Who Must File an FBAR

1. The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and
2. the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year reported.

When Due

1. The FBAR is a calendar year report and must be filed by the deadline of individual income tax returns (April 15, 2024 for 2023 reporting).
2. Filers who failed to meet the FBAR annual due date of April 15 get an automatic extension to October 15 each year. Accordingly, specific requests for this extension are not regarded.(Please note : The due date for FBAR for calendar year 2023 is April 15, 2024, consistent with the Federal income tax due date.)

How to file an FBAR

1. Effective July 1, 2013, the FinCEN 114 must be filed electronically through FinCEN's BSA E-Filing System.
2. The FBAR is not filed with a federal tax return.

Penalties

1. Non-willful violation : Those required to file an FBAR who fail to properly file a complete and correct FBAR may be subject to a civil penalty not to exceed $10,000 per violation.
2. Willful violation : The penalty may be the greater of $100,000 or 50 percent of the balance in the account at the time of the violation, for each violation. And criminal penalties may also apply.

The objective of FATCA is the reporting of foreign financial assets; withholding is the cost of not reporting. U.S. citizens, U.S. individual residents, and a very limited number of nonresident individuals who own certain foreign financial accounts or other offshore assets must report those assets. Taxpayers must report information on Form 8938 and attach it to their income tax return.

Taxpayers with specified foreign financial assets that exceed certain thresholds must report those assets to the IRS on Form 8938, Statement of Specified Foreign Financial Assets, which is filed with an income tax return. Those foreign financial assets could include foreign accounts reported on an FBAR.

Reporting Threshold (Total Value of Assets)

1. Living in the United States
   • Single, Married filing separately : $50,000 on the last day of the tax year or $75,000 at any time during the tax year.
   • Married filing jointly : $100,000 on the last day of the tax year or $150,000 at any time during the tax year.
   
   
2. Living abroad
   • Single, Married filing separately : $200,000 on the last day of the tax year or $300,000 at any time during the tax year.
   • Married filing jointly : $400,000 on the last day of the tax year or $600,000 at any time during the tax year.

When Due
By due date, including extension, if any, for income tax return.

Penalties
Up to $10,000 for failure to disclose and an additional $10,000 for each 30 days of non-filing after IRS notice of a failure to disclose, for a potential maximum penalty of $60,000. And criminal penalties may also apply.

The streamlined filing compliance procedures are available to taxpayers certifying that their failure to report foreign financial assets and pay all tax due in respect of those assets did not result from willful conduct on their part. Taxpayers who have not filed tax returns or FBARs can avoid penalties and potentially additional enforcement action by filing three years worth of tax returns and six years worth of FBARs.

Who Must File
The expatriation tax provisions under Internal Revenue Code (IRC) sections 877 and 877A apply to US citizens who have renounced their citizenship and long-term residents (as defined in IRC877(e)) who have ended their US resident status for federal tax purposes. Different rules apply according to the date upon which you expatriated.

For example, Expatriation on or after June 17, 2008.

• Your average annual net income tax for the 5 years ending before the date of expatriation or termination of residency is more than a specified amount that is adjusted for inflation ($168,000 for 2019, $171,000 for 2020, $172,000 for 2021, $178,000 for 2022, $190,000 for 2023).
• Your net worth is $2 million or more on the date of your expatriation or termination of residency.
• You fail to certify on Form 8854 that you have complied with all U.S. federal tax obligations for the 5 years preceding the date of your expatriation or termination of residency. If any of these rules apply, you are a ""covered expatriate.""

Penalties
Anyone who has expatriated or terminated his U.S. residency status must file Form 8854, Initial and Annual Expatriation Information Statement, and its Instructions. Form 8854 must also be filed to comply with the annual information reporting requirements of IRC 6039G, if the person is subject to the alternative expatriation tax under IRC 877 or IRC 877A. A $10,000 penalty may be imposed for failure to file Form 8854 when required.

Gift from Foreign Person
If you are a U.S. person who received foreign gifts of money or other property, you may need to report these gifts on Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts. Form 3520 is an information return, not a tax return, because foreign gifts are not subject to income tax. However, there are significant penalties for failure to file Form 3520 when it is required.

When Due
File Form 3520 separately from your income tax return. The due date for filing Form 3520 is the same as the due date for filing your annual income tax return, including extensions. You file an annual Form 3520 for all reportable foreign gifts and bequests you receive during the taxable year.

Where to File
Mail Form 3520 to the following address:
Internal Revenue Service Center
P.O. Box 409101
Ogden, Utah 84409

Penalties
You may be penalized if you do not file your Form 3520 on time or if it is incomplete or inaccurate. Generally, the penalty is 5% of the amount of the foreign gift for each month for which the failure to report continues (not to exceed a total of 25%).