What kind of support is available for CMS users?
Do 401(k)s fall under Box 3, or does that only apply when distributions are taken?
Taxed only on distribution under Box 1. Since a 401(k) is treated as a pension account, Box 3 taxes do not apply.
Do I Need to File U.S. Taxes From Abroad?
Yes, as a U.S. citizen or Green Card holder, you are required to file a U.S. tax return each year, regardless of where you live, if your income exceeds the filing threshold. This includes reporting your worldwide income. However, you may be able to use benefits like the Foreign Earned Income Exclusion (FEIE) or Foreign Tax Credit (FTC) to reduce or eliminate double taxation.
What is a Streamlined Filing?
Streamlined Filing is a program designed for U.S. taxpayers who have failed to file their tax returns or FBARs while living abroad but are not willfully avoiding their obligations. It allows you to catch up on your taxes without facing penalties. To qualify, you must certify that your non-compliance was unintentional and file the last three years of tax returns and the last six years of FBARs. This program is often used by expats who were unaware of their filing requirements.
What is a FBAR?
The Foreign Bank Account Report (FBAR) is a form (FinCEN Form 114) that U.S. citizens, Green Card holders, and residents must file if they have foreign financial accounts exceeding $10,000 in total at any time during the calendar year. It’s submitted electronically through the Financial Crimes Enforcement Network (FinCEN) by April 15, with an automatic extension to October 15. The FBAR helps the U.S. government track offshore accounts to prevent tax evasion.
