Regardless of your location we provide online tax preparation and planning services for US athletes and coaches.
American athlete or coach working or competing abroad and you are a green card holder or US citizen coach or athlete training or working with an overseas sports team , you are required to file a US tax return.
In most of the case US expats working abroad do not owe taxes . If you meet certain requirements, IRS has define some exclusion and credits the Foreign Earned Income Exclusion, the Foreign Housing Exclusion and the Foreign Tax Credit. To analyze which exclusion and credit applies in your, you have to work with tax professional expertise in expat and athlete taxes. Beside of exclusions and credit you still have to file a tax return and make the proper election to avail tax saving benefit . Otherwise, the IRS could deny you these benefits and make you pay US tax even if you paid taxes on our earned income in foreign country.
For athletes endorsement and appearance income is considered to be self-employment income.
Apart from you tax returns, you may have to report whether you have foreign bank or investment accounts. If you miss to report your foreign accounts timely, IRS can impose heavy penalties. Missed file a form because of your unawareness is not consider as excuse by IRS.
The U.S. has tax treaties with almost 60 countries which vary from country to country. These treaties has special exemptions for U.S. athletes from the foreign treaty country's income tax. Tax treaties are complex. It is always recommend to consult an international tax expert to determine if the treaty can benefit you.
If you have not files returns for several years and you have been living and working abroad as an athlete, then you are not alone. The IRS is offering a special procedure to bring delinquent taxpayers on track. Don't delay contact us to more about the program and get compliant. This program is open-ended so the IRS could put an end to it at any time.
At ATC we are offering tax return preparation and consulting service to U.S. professional, semi-professional athletes and coaches living and working aboard. We work with you to actively minimize your U.S. tax liability legally.