The Chinese national who has become, or is looking to become a US person, faces many challenges. One of the largest threats is a US tax system that is illogically complicated. The second problem is it is hard to find a US tax firm that understands Chinese culture and economics. Fortunately, this is where we excel. We have Mandarin-speaking tax specialists, who as Chinese nationals themselves, are fully versed on the challenges and opportunities that face Chinese-Americans.
Along with FATCA and FBAR reporting, below are the specific Chinese IRS tax issues our team of tax attorneys, CPAs, and tax preparers assist our clients with.
The US taxes its citizens on a worldwide basis. So what you earn in China, even if it is taxed by the Chinese taxing authority, is subject to additional taxes by the IRS. This is true even if you have a "tax-free" account in China. However, you are entitled to a credit for taxes paid. In the alternative, there is a foreign income exclusion which will exempt a portion of your income from income taxes.
If you are a Green Card holder you are subject to universal taxing jurisdiction on all your income, anywhere in the world. If you are a visa holder the rules are a bit more complicated about when universal taxing jurisdiction is triggered. EB-5 visa holders typically have a worldwide tax reporting requirement.
Citizens and residents living and working outside the U.S. may be entitled to a foreign earned income exclusion that reduces taxable income. In addition, you may exclude housing expenses, but with limits. There are limits and special rules about who qualifies for the exclusion, and we can help you understand if you qualify.
This is a non-refundable tax credit for income taxes paid to a foreign government as a result of foreign income tax withholdings. The foreign tax credit is available to anyone who either worked in a foreign country or has investment income from a foreign source. There are qualifying factors, and we can help you understand if you are eligible to tax advantage of this credit.
If you have made a mistake in previous IRS tax filings, or haven't filed at all, we can help. We are the nation's premier offshore disclosure firm. We have helped thousands of Chinese and others from around the globe properly disclose to the IRS. We can help you too. Click here to visit our Offshore Disclosure summary page.
If you would like to speak to us regarding any of these issues, contact us to schedule a consultation at 888-727-8796 or email email@example.com.