Phinch – US Tax Returns in the UK

US Tax: 2021 Tax Deadlines and Extensions for American Expats.

David Merrifield — Tue, 12 Jan 2021 08:44:23 +0000

Minimum income thresholds for US tax filing for expats For 2020 tax year (tax filing in 2021), the minimum income thresholds for US Expats are $12,400 for individuals, $24,800 for married couples (filing jointly), or just $400 of self-employment income for anyone, or just $5 of any income for Americans married filing separately with someone who isn’t a US citizen or green card holder.

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$900 billion Covid relief deal is announced

David Merrifield — Mon, 21 Dec 2020 18:09:16 +0000

US Congressional leaders announced yesterday evening (Sunday 20th December 2020) that they have secured a deal for a $900 billion ‘rescue package’ to deliver much-needed relief for small businesses, unemployed Americans and health care workers while bolstering vaccine distribution. The full details of what will be in the relief package have yet to be released. But the package is expected to…

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US Tax: ABLE Accounts – Final Regulations

David Merrifield — Thu, 03 Dec 2020 10:51:21 +0000

ABLE (Achieving a Better Life Experience) accounts are for eligible individuals with a disability – they are tax-favoured savings accounts to which contributions can be made to help pay for qualified disability expenses. The IRS recently released final regulations providing guidance related to various issues surrounding the requirements for 529A ABLE accounts. ABLE accounts were established…

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Rachel Finch becomes Certifying Acceptance Agent

David Merrifield — Thu, 19 Nov 2020 12:28:51 +0000

We are delighted that Rachel Finch has now officially become a Certifying Acceptance Agent. This means that Rachel can now certify and complete a Certificate of Accuracy (COA) to authenticate foreign identity documents for you, so you don’t need to send your identity documents to the IRS in the USA. A Certifying Acceptance Agent is a person (or business) who is authorised by the IRS to…

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Section 139: Qualified Disaster Payments

David Merrifield — Mon, 05 Oct 2020 09:10:16 +0000

At this point, most people have heard about relief measures the government has enacted in the wake of Covid-19, but there remains one opportunity to harvest that has had little discussion surrounding it—Section 139 Qualified Disaster Payments. Background Section 139 of the Internal Revenue Code was established as a response to the terrorist attacks on 9/11, giving employers the ability…

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Streamlined Procedure – The IRS Amnesty Program.

David Merrifield — Tue, 08 Sep 2020 11:03:29 +0000

The Streamlined Procedure is an IRS amnesty program that allows expats who are non-willfully behind with their US tax filing to catch up without facing any penalties. If you have not filed your tax return for many years you may be eligible for IRS amnesty by filing the last 3 years of delinquent returns and the last 6 years of FBARs. Rachel Finch is an Enrolled agent and can help you resolve…

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Real Estate Enterprise: How to Qualify for a Section 199a Deduction

David Merrifield — Thu, 03 Sep 2020 09:21:41 +0000

At the end of 2019, the IRS issued updated guidance on a new rental real estate safe harbour rule which allows certain rental real estate to be considered an “enterprise” eligible for a Section 199a deduction. What is Section 199a deduction? Section 199a gives owners of pass-through business entities an extra deduction of up to 20 percent of their qualified business income.

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Installment Agreements: What Should You Do If You Can’t Pay Your Taxes

David Merrifield — Fri, 07 Aug 2020 10:11:57 +0000

If you can’t pay your taxes, don’t panic. Here’s what to do first: Make sure to file your tax return on time—failure to file is a much higher penalty than failure to pay. Pay as much as possible when you file your tax return, as every dollar you pay at tax time reduces the late payment penalty and reduces the interest charges associated with the outstanding balance. If paying in full…

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Inherited IRAs and the SECURE Act of 2019

David Merrifield — Wed, 08 Jul 2020 09:26:28 +0000

At the end of 2019, the SECURE Act (Setting Every Community Up for Retirement Enhancement Act) was signed into law, modifying required minimum distribution (RMD) rules for inherited IRAs and retirement accounts. Under the SECURE Act, inherited IRAs and retirement accounts must be distributed and taxed within 10 years of the original owner’s death. Prior to the SECURE Act…

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US TAX: Paycheck Protection Loan Forgiveness

David Merrifield — Mon, 08 Jun 2020 09:40:01 +0000

When the CARES Act was signed into law, it created the Paycheck Protection Program (PPP), which is a new loan designed to help small businesses pay employee wages and other critical expenses. Proceeds from this loan can be forgiven if certain criteria are met. Once the PPP proceeds are deposited to your account, the original guidance stated that businesses must spend those funds within an…

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