Tax Tips for US Citizens Living in the Netherlands
Is the “Spaargeld BV” Obsolete?
Through 2022 the way the Netherlands taxed savings and investments was based on a deemed asset allocation and a deemed rate of return. This was calculated in "Box 3". So your tax was based on an asset allocation that was almost certainly not accurate and also based...
2021 Dutch Box 3 Tax – A Tale of Two Calculations
If you were a Dutch resident taxpayer subject to "Box 3" tax in 2021, you may be completely confused at the moment and rightfully so! Some background: The Dutch supreme court decided that the methodology of "deemed income" from your savings and investments was not...
2020 and 2021 Charitable Contributions with Standard Deduction
Normally to get a benefit from charitable donations you need to use Itemized Deductions on your US Tax Return. However, for 2020 and 2021 the CARES Act has a provision that allows for a deduction of up to $300 for Single, Head of Household or Married Filing Jointly...
PayPal Accounts and FBAR Reporting
The IRS has clearly stated that PayPal accounts located outside of the US are considered a foreign bank account for the purposes of FBAR filing. If you have a US-based PayPal account this would normally not need to be reported. Fortunately, the reporting from PayPal...
Virtual Currencies and FBAR Reporting
The IRS and FinCen have not given a lot of clarity on the "official" rules for reporting (or not) virtual currency holdings on your FBAR, but here are some general guidelines:1) If you store your virtual currency on a public exchange (e.g. Coinbase, Kraken), and the...
Coordination of Dutch Box 3 Tax and US Tax on Passive Income – An Overview
The most common complaint I hear about the Dutch tax system is the way that they tax income from savings and investments (e.g. interest, dividends and capital gains). This taxation occurs in "Box 3" of a Dutch tax return ("Box 1" covers wages, pensions, etc. and "Box...
Owe taxes? No passport!
I have had many questions in the past about whether or not owing taxes will result in you being denied entry to the US. My answer has always been that as a US citizen you have a right to enter the US, and only if you had already been found criminally liable and there...
Haven’t filed your Foreign Bank Account Reports (FBAR)? KPMG lays out the reasons why now is a good time.
Foreign Bank Account Reports (FBAR's) are currently policed by the US Department of Treasury's Financial Crimes Enforcement Network (FinCEN). If you haven't filed your Foreign Bank Account Reports yet, it probably makes sense to submit these sooner than later, in case...
Reminder: Q2 2018 Estimated Tax Payments Due June 15, 2018
Just a short reminder that the final 2018 Estimated Tax Payment is due June 15, 2018. To avoid (further) penalties for underpayment of estimated tax, in general, by January 15, 2019 you should have paid (in combination with 2018 US taxes withheld and all other 2018...
2013 Year End Tax Planning and the 3.8% Medicare Surcharge (for Expats)
I think this quote from the August 2013 issue of the Journal of Accountancy sums it up pretty well: “The new surtax on net investment income will come as a surprise to many individuals... Even more surprising for individuals will be that most tax credits (e.g. the...