{"id":8854,"date":"2021-02-18T11:28:39","date_gmt":"2021-02-18T11:28:39","guid":{"rendered":"http:\/\/13.40.31.108\/?p=8854"},"modified":"2021-02-18T11:28:39","modified_gmt":"2021-02-18T11:28:39","slug":"what-you-need-to-know-about-2021-us-taxes-for-expats","status":"publish","type":"post","link":"https:\/\/ustaxconsultants.es\/es\/what-you-need-to-know-about-2021-us-taxes-for-expats\/","title":{"rendered":"What you need to know about 2021 US Taxes for Expats"},"content":{"rendered":"<p>All U.S. Citizen you are re\u00adquired to file a <a href=\"https:\/\/www.irs.gov\/forms-pubs\/about-form-1040\">U.S. Individual Tax Return<\/a> every year, wherever in the world they live, repor\u00adting your worldwide income, even if you pay taxes in Spain. You must file the <a href=\"\/\/ustaxconsultants.es\/form1040\/\">Form 1040<\/a> (Federal Income Tax), if your gross income is <strong>at least $5 (married filing separately)<\/strong> or $12,400 (single). Tax Day is\u00a0<strong>Thursday, April 15, 2021<\/strong>. You\u00a0<em>must\u00a0<\/em>file your 2020 US Tax Return by this date! Expats have an automatic filing extension until June 15<sup>th<\/sup>, with a further extension available until October 15<sup>th<\/sup> upon request that we ask for automatically for all our clients for free.<br \/>\nYou must also file the <a href=\"\/\/ustaxconsultants.es\/fincen114\/\">FBAR (Foreign Bank Account Report<\/a>) with the Financial Crimes Enforcement Network, FINCEN 114 before June 15<sup>th<\/sup> 2021, if the aggregate amount of all the maximum balances of your financial accounts outside the US, reach the amount of $10,000 at any point during the year 2020.<\/p>\n<p><strong>Update for this year on Form 1040 2020<\/strong><br \/>\nHere are the main things you need to know right off the bat for the 2020 US Tax Return:<\/p>\n<ul>\n<li>Tax Day is\u00a0<strong>Thursday, April 15, 2021<\/strong>. You\u00a0<em>must\u00a0<\/em>file your 2020 US Tax Return by this date! Expats have an automatic filing extension until June 15<sup>th<\/sup>, with a further extension available until October 15<sup>th<\/sup> upon request that we ask for automatically for all our clients for free.<\/li>\n<li>The\u00a0<strong>standard deduction<\/strong>for 2020 increased to\u00a0<strong>$12,400<\/strong>\u00a0for single filers and\u00a0<strong>$24,800<\/strong>\u00a0for married couples filing jointly.<\/li>\n<li>Income<strong>tax brackets<\/strong>\u00a0increased in 2020 to account for inflation.<\/li>\n<\/ul>\n<table width=\"623\">\n<tbody>\n<tr>\n<td colspan=\"5\" width=\"623\"><strong>2020\u00a0Marginal Income Tax Rates and Brackets<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"75\"><strong>2020 Marginal Tax Rates<\/strong><\/td>\n<td width=\"133\"><strong>Single Tax Bracket<\/strong><\/td>\n<td width=\"142\"><strong>Married Filing Jointly<\/strong><\/td>\n<td width=\"132\"><strong>Head of Household<\/strong><\/td>\n<td width=\"142\"><strong>Married Filing Separately<\/strong><\/td>\n<\/tr>\n<tr>\n<td width=\"75\">10%<\/td>\n<td width=\"133\">$0\u20139,875<\/td>\n<td width=\"142\">$0\u201319,750<\/td>\n<td width=\"132\">$0\u201314,100<\/td>\n<td width=\"142\">$0\u20139,875<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">12%<\/td>\n<td width=\"133\">$9,875\u201340,125<\/td>\n<td width=\"142\">$19,750\u201380,250<\/td>\n<td width=\"132\">$14,100\u201353,700<\/td>\n<td width=\"142\">$9,875\u201340,125<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">22%<\/td>\n<td width=\"133\">$40,125\u201385,525<\/td>\n<td width=\"142\">$80,250\u2013171,050<\/td>\n<td width=\"132\">$53,700\u201385,500<\/td>\n<td width=\"142\">$40,125\u201385,525<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">24%<\/td>\n<td width=\"133\">$85,525\u2013163,300<\/td>\n<td width=\"142\">$171,050\u2013326,600<\/td>\n<td width=\"132\">$85,500\u2013163,300<\/td>\n<td width=\"142\">$85,525\u2013163,300<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">32%<\/td>\n<td width=\"133\">$163,300\u2013207,350<\/td>\n<td width=\"142\">$326,600\u2013414,700<\/td>\n<td width=\"132\">$163,300\u2013207,350<\/td>\n<td width=\"142\">$163,300\u2013207,350<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">35%<\/td>\n<td width=\"133\">$207,350\u2013518,400<\/td>\n<td width=\"142\">$414,700\u2013622,050<\/td>\n<td width=\"132\">$207,350\u2013518,400<\/td>\n<td width=\"142\">$207,350\u2013311,025<\/td>\n<\/tr>\n<tr>\n<td width=\"75\">37%<\/td>\n<td width=\"133\">Over $518,400<\/td>\n<td width=\"142\">Over $622,050<\/td>\n<td width=\"132\">Over $518,400<\/td>\n<td width=\"142\">Over $311,025<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><strong>Form 1040 2019<\/strong><br \/>\nThe IRS has announced that they are currently open and processing mail, 2019 tax returns, payments, refunds, and correspondence. During 2020 the IRS experienced delays in processing paper tax returns due to limited staffing. However, COVID19 continues to cause delays in some of their services. We estimate that at this point the IRS has processed around 50% of the 2019 tax returns received on paper.<\/p>\n<p><strong>New things taxpayers should keep in mind for Form 1040 2020.<\/strong><br \/>\nThis year, there are some key items to consider involving credits, deductions, and refunds:<\/p>\n<p><strong>Recovery Rebate Credit\/Economic Impact Payment.<\/strong><br \/>\nTaxpayers may be able to claim, within the Form 1040 2020, the\u00a0<a href=\"https:\/\/www.irs.gov\/newsroom\/recovery-rebate-credit\">Recovery Rebate Credit<\/a>\u00a0if they met the\u00a0<a href=\"https:\/\/www.irs.gov\/newsroom\/economic-impact-payment-information-center-topic-a-eip-eligibility\">eligibility requirements<\/a>, for both the first and the second Stimulus Check.<\/p>\n<p><strong>Interest on refunds taxable.<\/strong><br \/>\nTaxpayers who received a federal tax refund in 2020 may have been paid interest.\u00a0Refund interest payments\u00a0are taxable and must be reported on federal income tax returns. In January 2021, the IRS will send\u00a0Form 1099-INT\u00a0to anyone who received interest totaling $10 or more.<\/p>\n<p><strong>Child Tax Credit<\/strong><br \/>\nGot kids? Families\u00a0can<strong>\u00a0claim up to $2,000\u00a0<\/strong>per qualified child\u00a0with this tax credit and since this is a refundable credit, your family can receive up to $1,400 per child as a refund.<\/p>\n<p><strong>Strong recommendation for 2021<\/strong><br \/>\nContact you tax preparer to check what other forms you must attach to your 2020 US Tax Return, especially those connected with the automatic exchange of information between both Tax Agencies in the USA and Spain.<\/p>\n<p>The Form 8938 report of the financial accounts abroad, Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations or Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company (PFICs) Penalties for not filing these forms are $10,000 per year not filed.<\/p>\n<p><strong>What we need to prepare your 2020 US Tax Return and FBAR<\/strong><br \/>\nFor us to prepare your Tax Return this year you should <a href=\"\/\/ustaxconsultants.es\/upload\/\">upload<\/a> as soon as possible all important tax records: These include, W-2s from employers,1099s from banks and other payers, other income documents and virtual currency transaction records, even if we need to file first your Spanish Tax return from April to July, 2021.<\/p>\n<p>If you need any further information, please do not hesitate to contact us or <a href=\"https:\/\/outlook.office365.com\/owa\/calendar\/USTaxConsultants1@ustaxconsultants.net\/bookings\/\">book a free consultation appointment<\/a>.<\/p>\n<p>Antonio Rodriguez \u2013 US Tax Consultants<\/p>\n","protected":false},"excerpt":{"rendered":"<p>All U.S. Citizen you are re\u00adquired to file a U.S. Individual Tax Return every year, wherever in the world they live, repor\u00adting your worldwide income, even if you pay taxes in Spain. You must file the Form 1040 (Federal Income Tax), if your gross income is at least $5 (married filing separately) or $12,400 (single). [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":8856,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[25,23,4,24],"tags":[35,20,39],"class_list":["post-8854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fatca","category-irs","category-sin-categorizar","category-us-tax-return-1040-1040nr","tag-35","tag-irs-2","tag-us-federal-income-tax-return"],"acf":[],"_links":{"self":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts\/8854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/comments?post=8854"}],"version-history":[{"count":0,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/posts\/8854\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/media\/8856"}],"wp:attachment":[{"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/media?parent=8854"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/categories?post=8854"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ustaxconsultants.es\/es\/wp-json\/wp\/v2\/tags?post=8854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}