Tips for U.S. Taxpayers with Foreign Income

Did you live or work abroad or receive income from foreign sources in 2013? If you are a U.S. citizen or resident, you must report income from all sources within and outside of the U.S. The rules for filing income tax returns are generally the same whether you’re living in the U.S. or abroad. Here are seven tips from the IRS that U.S. taxpayers with foreign income should know:

1. Report Worldwide Income.  By law, U.S. citizens and resident aliens must report their worldwide income. This includes income from foreign trusts, and foreign bank and securities accounts.

2. File Required Tax Forms.  You may need to file Schedule B, Interest and Ordinary Dividends, with your U.S. tax return. You may also need to file Form 8938, Statement of Specified Foreign Financial Assets. In some cases, you may need to file FinCEN Form 114, Report of Foreign Bank and Financial Accounts. See IRS.gov for more information.

3. Consider the Automatic Extension.  If you’re living abroad and can’t file your return by the April 15 deadline, you may qualify for an automatic two-month filing extension. You’ll then have until June 16, 2014 to file your U.S. income tax return. This extension also applies to those serving in the military outside the U.S. You’ll need to attach a statement to your return to explain why you qualify for the extension.

4. Review the Foreign Earned Income Exclusion.  If you live and work abroad, you may be able to claim the foreign earned income exclusion. If you qualify, you won’t pay tax on up to $97,600 of your wages and other foreign earned income in 2013. See Form 2555, Foreign Earned Income, or Form 2555-EZ, Foreign Earned Income Exclusion, for more details.

5. Don’t Overlook Credits and Deductions.  You may be able to take atax credit or a deduction for income taxes you paid to a foreign country. These benefits can reduce the amount of taxes you have to pay if both countries tax the same income.

6. Use IRS Free File.  Everyone can prepare and e-file their federal tax return for free by using IRS Free File. If you make $58,000 or less, you can use brand-name tax software. If you earn more, you can use Free File Fillable Forms, an electronic version of IRS paper forms. Free File is available only through the IRS.gov website. Some Free File software products and fillable forms also support foreign addresses for those who live abroad.

7. Get Tax Help Outside the U.S.  The IRS has offices in Frankfurt, London, Paris and Beijing. IRS staff at these offices can help you with tax filing issues and answer your tax questions. Visit IRS.gov for more information.

You can get more on this topic in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad. IRS forms and publications are available on IRS.gov or by calling 800-TAX-FORM (800-829-3676).

Additional IRS Resources:

• Taxation of U.S. Resident Aliens
• Publication 514, Foreign Tax Credit for Individuals
• International Taxpayer

Smart Online Accounting. Cheqbook FAQ

GetApp profiles Checqbook with an FAQ / Cheqbook Accounting Frequently Asked Questions (FAQs)

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SOFTWARE BY CHEQBOOK

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Q. What are the main features of Cheqbook Accounting?

Cheqbook Accounting offers the following features: 60 Day Money Back Guarantee Automatically Download Transactions Create Unlimited Simultaneous Users Save time with AccuScore Smart Categorization Make Journal Entries and Split Transactions Send Invoices and Accept Payments Online View your books from your iPad or Android tablet Manage Bills and Print Checks 15 Reports including Balance Sheet and P&L Add-ons & Integration Export data including contacts and transactions Share with your accountant Fast Bank Reconciliation Print reports, statements, and 1099s Lock your Books Import bulk transactions Free Training Videos, Webinars, Certification Feel secure with automated offsite daily backup Unlimited Archived Companies Patent pending import and smart categorization

Q. How much does Cheqbook Accounting cost?

We have the following pricing information for Cheqbook Accounting: Starting from: $9.87/month Pricing model: Subscription Free Trial: Available (No Credit Card required) We offer (3) different plans. Each plan contains all the software features. You never pay extra to access additional features. The difference between the plans is the number of companies books you can keep. (1) Set of Books: $9.87 | (5) Sets of Books: $19.87 | (10) Sets of Books: $37.37

Q. Who are the typical users of Cheqbook Accounting?

Cheqbook Accounting has the following typical customers: Freelancers, Mid Size Business, Non Profits, Public Administrations, Small Business

Q. What languages does Cheqbook Accounting support?

Cheqbook Accounting supports the following languages: English

Q. What type of pricing plans does Cheqbook Accounting offer?

Cheqbook Accounting has the following pricing plans: Free Trial, Subscription

Q. Does Cheqbook Accounting support mobile devices?

Cheqbook Accounting supports the following devices: Android, iPhone-iPad, Mobile Web App, RIM-BlackBerry, Windows Phone

Q. Does Cheqbook Accounting offer an API?

No, Cheqbook Accounting does not have an API available.

Q. What other apps does Cheqbook Accounting integrate with?

Cheqbook Accounting integrates with the following applications: No information available.

Q. What level of support does Cheqbook Accounting offer?

Cheqbook Accounting offers the following support options: FAQs, Forum, Knowledge Base, Online Support, Phone Support, Video Tutorials

Q. What are the main benefits of using Cheqbook Accounting ?

Cheqbook Accounting offers the following benefits: Of all the different online accounting software products that are available, Cheqbook is the clear leader for a number of reasons. Once you begin to look at the list of accounting software and see what each product has to offer, you’ll easily understand why Cheqbook is the clear victor and the future industry leader in this category. When you compare Cheqbook smart online accounting to a list of other accounting services available, you’ll quickly find that Cheqbook offers more features than nearly every member of the distinguished competition.

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Cheqbook Accounting  

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Smart Online Accounting. Cheqbook is fast and easy to pick up for business owners while having the pro features that accountants and bookkeepers need. We can save business owners two weeks a year through our patent pending import and smart categorization.

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Reckon's all-new cloud accounting system debuts (Australia)

Daniel James for BusinessIT writes: Is the latest entrant to the cloud accounting market in Australia for you? Here is a brief introduction to Reckon One.

Australian accounting software company Reckon has been talking about its cloud-based Reckon One product for over a year (we noted the company's plans last March), but it's now a reality.

While not everyone is sold on the idea of cloud accounting - and Reckon is continuing to offer its traditional desktop Reckon Accounts software - it does have several advantages. You can use it from any reasonably modern computer with an internet connection, you can give your accountant access so there's no messing around with copies of files, and integration with other online services is simplified. 

While Reckon One has a contemporary design (see our gallery of screenshots from the beta release), what we find particularly interesting about Reckon One is its modularity and pricing structure.

The idea is that unlike the monolithic product editions we're used to with desktop software you can mix and match the features you need. And unlike some other cloud accounting systems that are priced according to transaction volumes and only make certain features available at higher tiers, Reckon keeps the two things separate.

So the only mandatory part of Reckon One is the Core module, which costs $5 per month. If you just want to handle payments, receipts and budgets, that's all you need. Mobile apps for iOS and Android are free, by the way. 

If the idea of having bank transactions imported automatically appeals, take the BankData module as well. The monthly charge starts at $3 for up to 100 transactions, rising to $5 for 250 and $7 for 500. If your bank account is busier than that, Reckon will quote a price.

The other initial modules are Invoices ($3 per month, or $5 if you need sales and purchase approvals) and Projects ($3 or $5 a month depending on your tracking requirements). More advanced versions of these modules are on their way.

Probably the biggest shortcoming is that the Inventory and Payroll modules are still under development, which rules Reckon One out of consideration for some types of business at this stage.

Also missing at launch are Time & Billing ("coming very soon") and GovConnect for online BAS lodgement ("coming soon").

An important part of Reckon One's modularity is that you can turn individual modules on or off (or up and down) as needed. An obvious example is GovConnect - if you lodge your BAS quarterly, you won't need GovConnect in the other months. And highly seasonal businesses may find that the basic BankData tier is fine for all but their busiest months.

If you operate more than one set of accounts - perhaps you have a side business in addition to your main venture - volume discounts start at 5% for just two books. As usual with such accounting services, a 30-day free trial of Reckon One is offered. 

How to Read the QuickBooks Audit Trail Report Like A Private Investigator

Jeanie Ebury for Wiebe Hinton Hambaleck writes:   All important accounting changes/edits in QuickBooks are recorded on the Audit Trail report. If you need to do a bit of digging in your file, this is where you should look.  Because it's comprehensive of all activities, these tips for how to sort and read the report will be very helpful.

How to Run the Report

In your file, go to the Reports menu, click Accountant & Taxes, then click Audit Trail. You should know that there is a simpler report if you're looking for detail on a single, specific transaction.  It's called the Transaction History report.

What Changes Are Tracked?

The Audit Trail report tracks things that impact accounting integrity. Changing the following information about any transaction in QuickBooks will cause it to be included in this report:

Transaction Date

Document Number
Payment Terms
Sales Rep
Shipping Date
Modifying User
Account
Class
Associated Name
Amount
Quantity
Unit Price
Item
Payment Method
Due Date
Whether the line item represents a discount or not
Reconciliation Status
Posting Status
Billed Date
Transaction Type

(Related reading: How to View a Previous Reconciliation in QuickBooks)

How to Read the Audit Trail Report

Any changes or edits are highlighted in Bold Italic type in the report. If there are multiple versions of a transaction, the earliest version will have no highlighting, but subsequent versions will highlight each value that differs from the previous version's value in that field by displaying the value in bold italics. If a line item was added to the transaction, that entire line of the report will be highlighted.

Each transaction is identified by a bold heading. The transaction heading information always appears in the following order:

1. The type of transaction (deposit, check, bill payment, etc.)

2. The document number (if applicable)

Sorting the Audit Trail Report

By default, the Audit Trail report is sorted by the user who created or last modified the transaction, the transaction type, and the date the transaction was created or last modified. Filters are available to sort out only the information you want to see.

Other Tips

1. The Num column displays the user-specified transaction number for each modified or deleted transaction. This field will be blank if a transaction is ready for printing and has not yet been assigned a transaction number.

2. The State column identifies whether you are looking at the most recent version of a transaction (the Latest) or an earlier version of the same transaction (a Prior). Transactions may have multiple Prior entries listed, but only one Latest.

This status (Latest or Prior) is automatically assigned by QuickBooks as transactions are added, deleted, or modified. To view the most current version of the transaction, double-click any field in the Latest entry in the report.

Use this report to clarify muddy transactions, double check correctness, or check employee activity.  It has many uses and is a necessary tool for business owners.  

Download our free ebook: Save 10 Hours a Month in QuickBooks

You can visit Wiebe Hinton and Hambalek by clicking here.