2020 is over soon, so the IRS advises American expat taxpayers to prepare for the 2021 tax filing season as there will probably be no extension of the date given by the authority this year. Therefore, a bit of expat tax planning in advance by hiring the professional USA expat tax services in Singapore can help you have a smooth transition throughout the year.
If you are not sure what steps to take in order to make your tax filing process stress-free, there’s a step-by-step guide of American taxation service expert that helps to ease your taxation burden throughout the year. Let’s get to know what are your possible US tax liability for the year.
What You Should Consider When Filing USA Expat Tax In 2021
There’s plenty of crucial taxation information that you’re not aware of or could go unnoticed. Luckily, you have the assistance of the American taxation service to help you out. Thus, with the guidance of the taxation expert, make sure you consider every US tax filing point.
Claim for Recovery Rebate Credit
If you are a taxpayer and received a Recovery Rebate Credit, you will also receive a Notice 144 directly from the IRS. Make sure you keep it with your 2020 tax records. You might need to check this record if you think that there’s any miscalculation of the payment amount or any such issue. Eligible taxpayers are allowed to claim for the Recovery Rebate Credit, also known as economic impact payment, on their 2020 Form 1040 OR Form 1040-SR.
Organize your financial records for tax time
For many taxpayers, the biggest hassle at tax time is getting all of the taxation documentation together. This documentation, in particular, includes last year’s tax return, current year W-2s and 1099, receipts, and so on. How do you overcome this last-minute tax filing hassle? You don’t have to take the stress until you are under the guidance of the professional USA taxation service in Singapore that helps you gather all the required tax documents in advance to complete your tax return.
- Keep all the tax-related information that you receive in the mail, such as W-2, 1099, and mortgage interest statements.
- Collect all the receipts of all the transactions you have made throughout the year.
- Group similar documents in a sequential order to avoid last-minute tax filing hassle
Reduce your tax liability
The taxation expert offering the complete USA expat tax services in Singapore to ensure you don’t pay an extra penny on your expat taxes in 2021. They know how to reduce your tax liabilities: by donating a certain portion to charities (authorized by the IRS). Also, their taxation assistance via service helps you maximize your IRA contributions, which are tax-deductible as per the USA expat tax provision. The more you can contribute with the guidance of the taxation expert, the less you have to pay to the IRS.
Possibility to amend the previous return if there’s a mistake found
Mistakes are bound to happen. If your hired USA Expat taxation expert finds that you have failed to report some income on your return, or if you didn’t claim for the deductions that you were eligible for, then he will assist you to file an amended return for that tax year using form 1040X. Filing an amendment with the support of the professional American taxation service is the best option before the mistakes get into the notice of the IRS.
With the assistance of the experienced USA tax expert and tax filing services in Singapore, there’s no more need to spend sleepless nights and suffer from panic attacks as the tax filing season comes every year. As USA expat tax filing is not an easy process, taxpayers should hire USA taxation service of an experienced tax expert in Singapore to enjoy a seamless way of preparing taxes and filing to the IRS every taxation year.
