Quote:
Originally Posted by AMC190
Hello, as an american pilot working abroad how do you deal with us taxes declaration? I'm interested in applying at turkish for the 737, 320 direct entry job.
Thank you.
Do not take the following as advice, always consult a tax professional who specialises in US Expat taxes...
Okay, after the disclaimer, here is the basics you must be aware of as a U.S. expat:
1) You
MUST file a tax return every year as an expat.
DO NOT (!!!!!) try to be tricky with your taxes, or think you can get away with under-reporting or hiding money. Recent U.S. laws, and changes in enforcement practices, have made it virtually impossible to hide money and have made the penalties for trying to do so extremely harsh. File your U.S. tax return properly and under the guidance of an experienced professional. And make sure that professional specialises in expat taxes as there are far more regulations, potential gotchas, and potential deductions than there are for domestic tax filers. Expat taxes are a very specialised area, so do not skimp on it.
2) Be prepared for issues with banking. FATCA and some provisions of the Patriot Act have made overseas banking for expat Americans quite difficult. FATCA imposes some pretty sever penalties for foreign banks who do business with "U.S. Persons" and fail to report the required account information to U.S. authorities. Yes, if you open an account overseas, under certain circumstances the bank is required by U.S. law to report your account information back to the U.S. government. Because the penalties for failing to make the proper reports are so severe, many banks are refusing to do business with American clients. This has left many U.S. expats without a bank account. The Patriot Act also places some restrictions on your U.S. based accounts when being accessed from overseas. Some U.S. banks have closed accounts when they have determined the owner lives overseas, even if the account owner has maintained a U.S. address. The State Department Federal Credit Union will now open a U.S. based account for American's living overseas and that has provided some relief.
3) You may have significant tax issues if your employer provides a retirement plan for you. Again, contact a tax professional for advice.
4) There are other forms to file outside of regular tax forms if you maintain an account overseas. FBAR is the big one, but there may be others.
Again I cannot emphasise this enough, you need to consult a tax professional. The above list is not comprehensive by any means. But many expat Americans are completely in the dark about what there responsibilities are, and what the potential penalties are if you fail in those responsibilities. So I post them to help make you aware. Ignorance of these laws can, and have, destroyed many peoples lives financially. Before taking a job overseas, Google FBAR and FATCA and educate yourself. Take a look at American Citizens Abroad (ACA) for some good information and resources like tax professionals.
12-30-2023
