Filing American Tax Forms
The American tax system is complex, and unique in many ways – mainly it’s a personal, citizenship-based tax system, different from most countries. In practice, this means that all US citizens, including those living in Israel, are required to submit personal tax forms every year, and potentially pay tax in America – regardless of where they live and where their income was created.
This entire process involves specific American tax forms, that, if you’re a U.S citizen living in Israel, you need to complete and submit annually.
Anybody who has ever had to fill out American tax forms and submit an annual tax report to the IRS, knows that it’s a complex issue which requires you to provide masses of information and financial details for all those included on the tax form. We’re not saying this to scare or alarm you, but so that you be aware that US tax forms are quite complicated for non-US residents. That’s why many choose to get professional assistance from an international tax lawyer or accountant with an in-depth knowledge of the American tax system when the time comes to fill out US tax forms. choose to fill and submit the forms on your own.
Boaz Reuven Law Office is a small but expert law firm, specializing in custom legal services regarding Israeli and global taxation, while focusing on American taxation and all the relevant information and forms needed.
Main American Tax Forms
American tax forms include several forms that the IRS might require from you. This will depend on different criteria such as your personal situation, income type and capital. For US citizens not residing in the USA, the main forms required (in order of importance and relevance), are:
- Form 1040 – Individual Tax Return: a tax report form that’s basically required from all American citizens. This is an annual financial report submitted to the IRS and it needs to include all income sources, no matter where they were created. In the 1040 form you specify income from items such as salary, business income, rent received, capital gains from investments, real-estate profits, interest derived income, pensions, scholarships, and even money (or goods) won in lotteries, gambling etc. The form includes personal details, requires a lot of financial data and additions and appendixes regarding local taxation, income types and more.
- FBAR Form: a declaration of capital held outside the US. This refers primarily to money/assets held in financial accounts in banks, brokers, investment firms, pension funds, saving accounts etc. This form is required only if the total amount in all the various accounts exceeds $10,000.
In more specific cases, US taxpayers not residing in America might be asked to complete and submit other tax forms. These can include: Form 1120 for corporate taxation, Form 8938 that expands the reporting requirements for capital and financial accounts, Form 1065 for partnership taxation, Form 1099 for reporting relevant money transfers, and other forms relating to special circumstances.
For personal, accurate and professional legal services regarding American tax forms and other tax issues, please contact us at Boaz Reuven Law