Dual citizen parents need to file taxes for increased financial aid eligibility

In a previous post we discussed applying to bachelor’s degrees as a dual citizen. This post provides information for parents who are dual citizens about the importance of and resources to complete US taxes so their students can submit the Free Application for Federal Student Aid (FAFSA).

The FAFSA is generally required by universities as part of their financial aid application process. It is the core element in determining a student’s financial need and considers parents’ ability to pay for an education by reviewing the family financial condition. It asks for significant information about income and assets, and includes information from the US tax filings all US citizens are required to submit.

Many dual citizens and naturalized citizens living abroad are not aware that they are required to file tax documents to the US Internal Revenue Service (IRS) every year. This often means years might go by with no tax returns filed until the child prepares for university in the US.

US tax law is very detailed and confusing. Different earning levels and kinds of assets require different forms. The simplest tax situation often requires a simple tax form, but as expats the situation is automatically more complicated. Besides the different types (or lack) of documentation available in other countries, the tax forms all have to report US Dollar amounts. This can be especially challenging in countries with high inflation.

Due to the complicated, legal nature of US taxes and IRS requirements, American Advisors recommends expat parents contact and work with experts in the field: Greenback Expat Tax Services.

Greenback makes filing US Expat taxes really easy. With any tax filing, there is a risk that you might owe tax payments, but Greenback makes sure you pay the least amount of taxes legally possible by taking advantage of every possible deduction and credit opportunity. Plus, they explain taxes in a way that most people can understand so you don’t spend hours trying to understand tax return instructions and information. Greenback uses a secure online system that makes sharing tax information easy. In fact, you never even have to meet with an accountant in person.

Take a look at their website for more information on their services.

US taxes for dual citizens

Of course there are other resources as well, including several Expat Tax guidebooks on Amazon.com and the official IRS website too. Take a look to see how you want to proceed with your filings. This