Best Tips to Taxpayers American Living in Abroad We have all said to ourselves that we pay too much tax. What if you really paid more than you should? This is highly possible. In the USA, there are between 400 and 500 tax loopholes, which allow you to reduce your taxes considerably. Paying taxes is important for the smooth running of the USA state, but that does not prevent you from paying a fair tax. How to reduce your taxes? How to pay less tax if you were in the category of Taxpayers American Living Abroad
Fill out your tax declaration and declare your income properly Reductions, deductions, tax credits, and tax allowances The thing may seem obvious, and yet it is almost never well done. Completing your tax return and correctly declare is essential to recover tax credits, obtain tax reductions and deductions. They should not be omitted; otherwise, the bill will get heavier at the end of the account. Indeed, the care of your young children in nursery or even home care is supported by the state. If you employ home staff, be it babysitting, a gardener, a housekeeper, you can get tax breaks on declared and paid wages. You can, in particular, have abatements on certain expenses like your professional expenses. So, if you use your vehicle to go to work, you can get a significant tax allowance. Declare and reduce your family taxes Your children are a catalyst for tax cuts. It is necessary to declare the children attached to your tax household. A child increases your family quotient by half a share. Also, if you are married or civil
partners can declare your goods so common. However, take care with the withholding tax that the common rate applied does not serve one spouse if he earns much more money than the other. One mistake that is often made is to report gross income! Never make that mistake again. What interests taxes is net income? So declare your good salary, your net income. Declare your support payments In addition, if you divorce your spouse, it is very likely that you will have to pay support by court order. Various tax-deductible support payments can be made. You can indeed pay support, depending on your family environment: To your ex-husband (s) as part of compensation or assistance for the costs of marriage To your minor children through your ex-spouse In addition, you will be able to obtain abatements if you pay alimony to your adult children or to your ascendants.
You can get a tax reduction if you pay a pension to your adult children to help them live, help them with their studies, or help the couple they form with their partner. Depending on whether the child is attached to your home or not, you will not have the same benefits. As for the ascendants, namely your parents, grandparents, etc. you can get a tax reduction if the ancestor is housed in your home and if he is at least 75 years old. Make donations to associations or political parties You can also decide to create a reimbursement to a political party of your option. In addition to providing means to your political party, this payment is supported by the government since you can obtain tax reductions. However, these deductions are capped at a certain amount.