US Tax Preparation for Expats in Sweden

No matter where an expatriate relocates to, they’ll have some tax obligations in the United States for a certain period of time. While some countries have different expatriate tax requirements than others, it’s important for expatriates to be diligent about complying with tax laws in both the U.S. and their new country of residence. Expats in Sweden have an obligation to comply with U.S. tax law, which they can do with the help of an accountant that specializes in U.S. tax preparation for expats in Sweden.

Ted Kleinman, the foreign tax accountant at US Tax Help, is dedicated to helping U.S. expats in Sweden and elsewhere fulfill their tax obligations. With his assistance, expats can file important documents (including FBAR and FATCA forms), prepare their tax returns, and make sure they are in compliance with tax laws in multiple countries. To learn more about how you can use the services of US Tax Help to prepare your U.S. taxes as an expat in Sweden, call us at (541) 362-9127.

Preparing Tax Returns as an American Expat Living in Sweden

U.S. expatriates face many of the same tax requirements as people that live in the United States, but they face a slightly more complicated process. The following is some important information that U.S. expatriates in Sweden should be aware of.

Which American Expats in Sweden Have to Prepare Taxes

U.S. citizens living abroad must report the income they make, both within the United States and abroad. This applies to U.S. citizens living in all countries, including Sweden. However, people that are categorized as “covered expatriates” must meet an additional tax requirement, which is known as the expatriation tax or exit tax.

Expatriates that are regarded as covered expatriates are those that meet any of the following criteria: their net worth was $2,000,000 or more on the date that they expatriated from the United States; they were unable to certify with the IRS that they satisfied all U.S. tax reporting requirements for the five years preceding their expatriation or end of their U.S. residency; or they had an annual net income tax during the five years preceding their expatriation that was higher than a certain amount. U.S. expatriates that meet any of the preceding criteria and had an expatriation date after June 16, 2008, are considered to be a covered expatriate.

The Deadline for Filing Expat Tax Returns

U.S. expatriates that are living in Sweden and other countries must meet the same tax filing deadline as people that in the United States, which is typically April 15. However, U.S. citizens that are living overseas are automatically eligible for a two-month extension for filing their tax returns and paying their taxes. Note that while no penalties are assessed until after the June 15 deadline, interest begins to accrue on tax obligations starting April 15.

Tax Forms That U.S. Expats in Sweden Have to File

In addition to the tax forms that they normally have to file, American expatriates that live in Sweden have to file other forms as well, which include the following.

Form 8854 for American Expats

Expats who qualify as covered expatriates must file Form 8854 if they were expatriated before June 16, 2008, but after June 3, 2004, and comply with reporting requirements under U.S. Code § 6039G.

Disclosing Foreign Income with an FBAR Form

Some American expatriates will have to file a Report of Foreign Bank Accounts (also known as an FBAR) if they meet certain criteria. The purpose of the FBAR is to disclose Americans’ assets in foreign banks and foreign financial institutions, which prevents them from concealing funds. U.S. expatriates must file FBARs if they either have signature authority over a foreign account or financial interest in a foreign account. The foreign account or accounts must have a total value greater than $10,000 at some point during the year. To comply with FBAR requirements, U.S. expats can file FinCEN Form 114 online using the BSA E-Filing system.

Other Forms That American Expats in Sweden Have to File

Some American expats living in Sweden may have to file a form related to the Foreign Account Tax Compliance Act, also known as FATCA. American expats who are either United States citizens, non-resident aliens residing in Puerto Rico or American Samoa, non-resident aliens that choose to be treated as resident aliens for joint tax filing purposes, and non-U.S. citizens that meet the “substantial presence test” must complete FATCA forms if they have assets with a value that exceeds $200,000 on the final day of the year or $300,000 at any point during the year and are filing a non-joint tax return. People that are filing a joint return must file a FATCA form if their assets exceed $400,000 on the final day of the year or if they exceed $600,000 at any point during the year for which they are reporting.

Accountant for U.S. Expats Living in Sweden

U.S. expatriates living in Sweden must comply with tax laws in both the United States and Sweden. If you are a U.S. expatriate living in Sweden, you don’t have to navigate multiple systems of taxation by yourself. Get in touch with an experienced foreign tax accountant from US Tax Help for aid with U.S. tax preparation for expats in Sweden. Call us at (541) 362-9127 to learn more about our foreign tax accounting services today.

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