Does a US citizen living in Australia pay US taxes?
Do you live in Australia and are a US citizen? Then you need to understand whether or not you are responsible for paying US taxes from abroad. In this article, we will explore whether US citizens who reside in Australia pay US taxes.
As a general rule, US citizens who reside in Australia are still responsible for filing Federal and State tax returns with the IRS each year. This includes any income earned within the United States as well as foreign sources. Foreign-earned income may be subject to taxation below that of domestic wages.
Similarly, some instances of inheritance may also be taxable under specific circumstances prescribed by the federal government. Those who receive money from certain family members such as grandparents may find themselves obligated to report the earnings on their Form 1040 regardless if they are living outside of the United States at the time of receipt.
Furthermore, American-based brokerage accounts must still declare all account activity on Schedule B (Form 1040). This applies even when these accounts remain open and active outside of the United States so long as an American taxpayer is registered under said account name(s). Penalties for noncompliance can result and those facing significant sums should seek professional guidance before filing or using the services of a tax preparer.
Finally, double taxation can occur through payroll withholding via W-2 Forms filed by employers. Fortunately, provisions exist through treaties between both countries which prevent many personal taxpayers from experiencing certain levies associated with this scenario (i.e., submitting individual returns twice with some income being taxed both at home and inside of Oz).
By cultivating awareness over applicable laws in both nations, expatriates living abroad should have no trouble filing yearly returns with accurate information provided throughout relevant forms points sourced between multiple governments entities by April 15th each year in good standing – though upcoming deadlines should always be verified beforehand due to ongoing pandemics or other world events complicating schedules along fiscal fiscal calendars globally beyond conventional expectations potentially imposed overall like constantly changing 2020 from 2019 leading into 2021 formally shortly very soon forth forwrdly indeed nowadays pretty quickly unusually weirdly mentally active academically if possible arguably it would appear so cautiously obviously significantly imminently too then obviously equally furthermore allegedly too thus as well effectively finally undoubtedly next because mainly really resulting thereby simultaneously maybe across most likely subsequently clearly another nearly something similar likewise right away later consequently often around
