US Expats Save Tax with Mail Forwarding
As an expat, you are probably looking for ways to save on your taxes. The United States is one of the most difficult countries in which to pay taxes as an expat. However, there are a few strategies that you can use to reduce your tax bill.
For example, one of the biggest and best methods for saving on taxes as an expat is to use a mail forwarding service. By using a mail forwarding service, you can have your mail sent to a US address in a state that has favorable taxes. With South Dakota, for instance, you can save a significant amount of money on your taxes by using a mail forwarding service. South Dakota has no state income tax as well as various other savings compared to other states.
What happens after your mail is received by the mail forwarding service? As the name suggests, they will then send the mail to your current location. If you’re living overseas or on the move, this is much easier than having to constantly update your address with the US Postal Service.
One thing to keep in mind is that you will need to have a physical street address in the US to use a mail forwarding service; PO Boxes are not accepted. Fortunately, this isn’t a problem with the best South Dakota Tax Savings and Mail Forwarding companies. Just reach out to the company and they will arrange everything for you, so that you can focus on more important things.
There are a few other benefits of using a mail forwarding service as well. For example, you can have your mail scanned and emailed to you so that you can stay on top of things even when you’re on the go. Among other things, this means that you can filter what gets sent through to you rather than spending to get spam sent across the world. Simply log into your online portal, decide what you want to receive, and delete/shred the rest.
Pay Less Tax in South Dakota
By choosing a state like South Dakota, this will become your registered US address, which means you’ll get even more privacy. This is because your state of residence will be hidden from public view, meaning that only you and those to whom you’ve given your address will be able to see it. Also, you won’t have to pay income tax, social security tax, and pension tax. Even after this, car insurance rates and vehicle registration are both cheaper.
If you’re looking for other ways to save money while living overseas, there are a few things you can do. First, make sure that you’re taking advantage of all the deductions and tax breaks that are available to you. There are many deductions available to expats, so don’t leave any stones unturned. As an example, the Foreign Earned Income Exclusion allows you to exclude up to $100,800 of your foreign earned income from your US taxes.
Elsewhere, the Foreign Tax Credit allows you to claim credit for any foreign taxes that you’ve already paid. This can be a valuable way to reduce your overall tax burden. To claim the credit, you’ll need to file Form 111626 with the IRS.
Finally, remember that if you’re self-employed, you may be eligible for the Self-Employment Tax Deduction. This deduction can reduce your self-employment tax liability by up to 15.30%.
If you’re an expat and you’re looking to save on your taxes, be sure to take advantage of all these tips today – good luck!