This episode addresses the challenges faced by foreign nationals on work visas who have been laid off, particularly from tech companies like Amazon. The hosts provide actionable steps to navigate the emotional and practical aspects of job loss, including immigration considerations, financial assessments, and health insurance options. They emphasize the importance of quick action, networking, and maintaining a positive mindset during this difficult time.

 Takeaways  

• Dealing with a layoff is emotionally challenging, especially for foreign nationals.

• It's crucial to act quickly to manage your immigration status after a layoff.

• Consulting with an immigration lawyer is essential for understanding your options.

• Consider switching to a B-2 visitor visa to spend more time in the U.S. 

• Financial assessment is critical during the first few weeks after a layoff.

• Health insurance options like COBRA should be explored immediately.

• Networking and updating your resume should be immediate priorities.

• Family support can be vital during a job search.

• Maintaining a positive mindset is key to overcoming challenges.

• Explore job opportunities in other countries if returning home isn't an option.

Chapters  

• 00:00 Navigating Layoffs for Foreign Nationals

• 10:27 Emergency Mode: Financial Assessment and Job Search

• 13:17 Practical Steps for Job Search

• 16:57 Health Insurance and Immigration Considerations

• 20:51 Empowerment and Moving Forward

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This conversation discusses the implications of the One Big Beautiful Bill Act, which introduces a 1% excise tax on remittance transfers starting January 1, 2026. The goal is to raise approximately $10 billion over the next decade.

We explain how this tax will affect American families sending money abroad, the collection process, and planning strategies to mitigate the impact of this new tax.

We emphasize the importance of understanding the tax's application and exploring alternative methods for sending money to avoid additional fees. 

We have a new checklist to help you plan for the new tax and hopefully avoid it.

Takeaways  

• A 1% tax on international money transfers will take effect in 2026.   

• The tax applies to all remittance transfers by US citizens,  residents, and foreign nationals on work visas – (Everyone)

• Providers will collect the tax on behalf of the IRS.

• Planning for the tax is essential to manage costs effectively. 

• Some transfers may be exempt, based on the institutions used or the methodology.

• A checklist is available to help plan for the new tax.

Chapters

• 00:00 Introduction to the New Tax on Remittances

• 02:45 Understanding the Impact of the Tax

• 05:56 Planning for the New Remittance Tax

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Grab  "the Comprehensive Checklist for Foreign Nationals on Work Visas Leaving the U.S." currently on sale, to celebrate our 50th episode.

If you'd like to work with us on your finances or taxes, check out the process 

I was a guest on the Smarter Planner Podcast hosted by Belle. The conversation was so engaging that, with her permission, we're sharing it with you, our audience.

In this guest episode, Belle Osvath, CFP, and I discuss the financial challenges immigrants and foreign nationals on work visas face in the U.S., including navigating different financial systems, tax implications, and retirement planning.

I share insights on the importance of early financial education for immigrants and the need for collaboration among financial advisors.

The conversation also touches on the impact of recent policy changes on immigrants.

Takeaways  

• Financial planning for immigrants requires understanding their cultural backgrounds.

• Many immigrants and planners are unaware of the complexities of the U.S. financial system.

• Early financial education can greatly benefit immigrants before they arrive in the U.S.

• Collaboration among financial advisors is crucial for effective cross-border planning.

• ax implications can vary significantly based on the client's home country. 

• Retirement accounts in the U.S. may not align with foreign tax codes.

• Policy changes can create anxiety and uncertainty for immigrant clients - be prepared to deal with it.

  
  
  Chapters  

• 00:00 Understanding the Immigrant Financial Landscape

• 06:02 Navigating Financial Planning for Non-Immigrants

• 12:04 Cross-Border Financial Challenges

• 17:52 Retirement Planning and Tax Implications

• 23:49 The Impact of Policy Changes on Immigrants

• 25:59 The International Money Cafe Podcast

Episode Links and Resources

• Michael Kitces - Navigating Challenges When Investing For Work visa Holders

• Ep 43: How To Find A Great Cross-border Financial Planner

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In this conversation, we discuss the complexities of Passive Foreign Investment Companies (PFICs) and their implications for U.S. tax residents with overseas investments.

We explain what PFICs are, the tax burdens associated with them, and provide practical steps for identifying whether a foreign fund qualifies as a PFIC.

The discussion emphasizes the importance of consulting tax professionals and understanding the tax implications of foreign investments.

Takeaways 

• PFIC stands for Passive Foreign Investment Company. 

• PFICs are legally permissible for investment, but they come with tax burdens.

• Growth in foreign mutual funds is taxed at income tax rates. 

• IRS Form 8621 can take up to 25 hours to complete.

• Foreign mutual funds and retirement accounts can be PFICs.

• Three ways of identifying if a foreign fund is a PFIC or not.

Chapters  

• 00:00 Understanding PFICs: The Basics

• 02:59 The Tax Implications of PFICs

• 05:28 Identifying PFICs: Practical Steps

Episode Links and Resources

• Ep 26: What Is English For "PFIC?"

• Ep 42: What is English For "Gift & Estate Taxes?"

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If you'd like to work with us on your finances or taxes, check out the process 

In this conversation, we explore the unique challenges faced by individuals living and working in the U.S. on work visas, with a particular focus on the complexities of leaving the U.S. while ensuring that their financial, legal, and personal interests are protected.

We discuss various strategies for managing financial obligations, ensuring legal compliance, protecting assets, and addressing family considerations, emphasizing the importance of careful planning and adaptation in navigating this transitional phase. 

Ultimately, we introduce a unique resource that we have created to support you on your journey. The Complete US Departure Checklist For Those On Work Visas

Takeaways 

• Leaving on a work visa presents unique challenges. 

• Tax obligations can be complex for those with international ties.

• Leaving the U.S. requires careful planning to protect interests. 

• Understanding retirement account options is essential when leaving

• Legal compliance is necessary to avoid future complications. 

• Asset protection strategies are vital for real estate and investments.

• Family considerations are key.

• Effective timeline management is crucial for a seamless transition.

• Building a meaningful life can be achieved anywhere, despite the challenges it presents.

Chapters  

• 00:00 Navigating Life on a Work Visa

• 04:56 Challenges of Leaving the U.S. on a Work Visa

• 10:09 Financial Exit Strategies

• 15:11 Legal and Administrative Considerations

• 19:35 Asset Protection and Estate Planning  

Episode Links and Resources

• Michael Kitces - Navigating Challenges When Investing For Work visa Holders

• Ep 18: What Is English For US Situs Assets?

• Recovering From A Layoff On A Work Visa: Action Plan

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In this episode, we delve into the concept of life insurance, particularly in a cross-border context.
We discuss the two main types of life insurance: term and permanent, and when foreign nationals might need them.
We emphasize the importance of life insurance for expatriates and foreign nationals, particularly in terms of providing financial support to families and managing estate taxes. 
We discuss two use cases for the different types of life insurance for foreign-born families.

Takeaways  

• Life insurance is a contract between the insured and the insurance company.

• Term life insurance provides coverage for a specific period.

• Permanent life insurance includes a cash value component.

• The primary purpose of life insurance is to provide income replacement for dependents.

• Choosing the right insurance company is crucial for cross-border policies.

• Estate taxes can be significantly higher for non-residents. Life insurance can help cover estate taxes for beneficiaries.

• Customizing life insurance policies is essential for individual needs.

Chapters  

• 00:00 Understanding Life Insurance in a Cross-Border Context

• 02:59 Types of Life Insurance: Term vs Permanent

• 05:47 Who Needs Life Insurance and Why?

Episode Links & Resources

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

• Ep 08: What Is English For "Domicile?"

• Do I Need A Trust, Especially On A Work Visa?

• Ep 42: What Is English For "Gift And Estate Taxes?"

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We discuss the top three essential financial and tax considerations for foreign executives relocating to the US on an L-1 visa.

We start by defining the different types of L1 visas.

We also cover the implications of US income tax filing, considering the substantial presence test for tax residency, compliance with foreign financial assets, and estate and gift tax considerations.

We emphasize the importance of pre-immigration planning and working with cross-border tax professionals. 

Takeaways  

• L1 visas are for foreign executives and managers.

• US tax residents must declare worldwide income.

• Timing your arrival affects tax obligations.

• Pre-immigration tax planning is crucial.

• Foreign financial assets must be reported.

• Non-compliance with asset reporting incurs penalties.

• Estate and gift tax implications are significant.

• Work with professionals on both sides of the border. 

Chapters  

• 00:00 Understanding the L1 Visa and Its Implications

• 02:47 US Income Tax Filing and Compliance for L1 Visa Holders

• 06:07 Managing Foreign Financial Assets and Compliance

• 09:00 Estate and Gift Tax Considerations for High Net Worth Individuals

Episode Links & Resources

• EP 09: Work Visas And Investing In The US

• Ep 04: What Is The Substantial Presence Test

• Ep 32: What Is English For "Job Loss On A Work Visa"
  
  

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Grab  "the Comprehensive Checklist for Foreign Nationals on Work Visas Leaving the U.S." currently on sale, to celebrate our 50th episode.

If you'd like to work with us on your finances or taxes, check out the process 

We delve into the complexities of tax treaties, their implications for individuals and businesses, and the importance of understanding saving clauses and various types of tax agreements.

We highlight how tax treaties can help mitigate double taxation and the necessity of professional guidance in navigating these agreements.

Understanding tax treaties is crucial for financial planning. Court cases can inform the interpretation of tax treaties. Professional help is recommended for navigating tax treaties. Tax treaties can vary significantly from one country to another.

Key Takeaways

• A tax treaty is a bilateral agreement to avoid double taxation.

• Tax treaties determine which country has the right to tax income.

• Saving clauses in treaties may not benefit taxpayers.

• Approximately 70 countries have income tax treaties with the US.

• Estate tax treaties can significantly impact taxation on assets.

• Totalization agreements prevent double social security taxation.

Chapters

• 00:00 Understanding Tax Treaties

• 03:12 The Implications of Saving Clauses

• 05:54 Types of Tax Agreements and Their Importance

Episode Links & Resources

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

• Ep 13: Between A Rock &  A Hard Place: Mitigating Double Taxation

• U.S. Income Tax Treaties - A to Z

• U.S. Estate & Gift Tax Treaties

If you'd like to work with us on your finances or taxes, check out the process 

Do you understand the importance of conducting a mid-year financial check-in, especially for those with cross-border financial needs?

We cover various topics, including tax strategies, estate planning, insurance assessments, and preparations for college and travel that can be reviewed over the summer. We emphasize the importance of proactive financial management during the summer months, ensuring listeners are well-prepared for the remainder of the year.


Takeaways  -  Things you can do mid-year as part of your summer financial check-up

• Engaging with tax advisors in the summer is likely to yield better results.

• Charitable giving can provide tax deductions during the summer.

• Tax loss harvesting is a strategy to reduce taxable income.

• Estate planning is crucial before traveling overseas.

• College-bound kids need financial and medical powers of attorney. 

• Insurance policies should be reviewed regularly for savings.

• Emergency funds should be assessed and adjusted as needed.

• Consult with immigration lawyers for visa holders.

• Review and adjust financial plans.    

Chapters

• 00:00 Mid-Year Financial Check-In

• 12:08 Estate Planning Essentials

• 19:45 Insurance and Risk Management

• 23:57 Preparing for College and Travel

• 25:54 Final Thoughts and Summer Financial Tips

Episode Links & Resources

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

• Tax-Loss Harvesting: How To Boost Your Portfolio Gains.

• Ten Tips On How To Pick A Tax Preparer

If you'd like to work with us on your finances or taxes, check out the process 

What's NIIT?

We discuss NIIT (Net Investment Income Tax), explaining its implications for individuals with investment income and also how it applies in cross-border situations. 

We cover the statutory thresholds for the tax, what constitutes net investment income, and the reporting requirements.

We also touch on some fascinating recent court cases that have impacted the application of the NIIT for expats and the potential for foreign tax credits.

Takeaways

• The Net Investment Income Tax (NIT) is a 3.8% tax on certain investment income.

• There are specific thresholds based on the filing status: $250,000 for married filing jointly, $125,000 for single, and $200,000 for others.

• What's included in NITT and what's excluded

• How NIIT is impacted by Foreign investment income

• How to cover NIIT liabilities, especially on W-2 income.

Episode Links & Resources

• Treaty-Based Foreign Tax Credits for the NIIT

• Questions And Answers On NIIT From IRS

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 

Things are bad in the U.S., should I move my money overseas?

We explore this question that has come up a couple of times, due to the economic uncertainty. 

We include tariffs, market volatility, practicalities of funds transfer, and financial goals as items to take into consideration.

Key Takeaways

• Moving money overseas can be complicated and requires an understanding of regulations.

• Exchange rates and compliance requirements are critical factors to consider.

• Assess the underlying reasons for wanting to move money.

• Financial planning should align with personal goals and timelines, maintain open communication with your financial advisor.

• Investing in diversified portfolios can mitigate risks. 
  
  Episode Links & Resources

• Where to Save Short-Term Money

• Ep 34: What Is English For FBAR

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

How long do you keep your tax records?

A shortie that packs a punch. We discuss how long you should retain your tax and other financial records. 

We explore the statute of limitations for tax records, the importance of supporting documents, and special considerations for non-residents and property sales.  

 Some takeaways

• Keep copies of all your tax records for as long as necessary.

• The statute of limitations for tax records is three years for refunds.

• If you never filed a tax return, keep records indefinitely.

• Non-residents should hold onto property sale records until the issue is resolved.

• Employment records should be kept until a Social Security application is submitted.

And a whole lot more.  

We emphasize the importance of maintaining accurate records to ensure compliance with tax regulations and protect against potential issues with the IRS.

Episode Links & Resources

• Ep 11: Navigating U.S. Taxes

• Ep 40: Avoid These Blunders With Your Cross-Border Taxes

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

Your uncle just sent you a ton of money from overseas - what are the tax implications?

We discuss the complexities of gift taxes, particularly for individuals receiving gifts from overseas.

We explore the annual gift tax exclusion, reporting requirements for large gifts, and the implications of receiving money from non-U.S. persons.

The conversation also touches on exceptions to reporting requirements and the potential issues surrounding covered expatriates. 

We emphasize the importance of transparency and consulting with experts to navigate these financial matters effectively.

Some Key Takeaways

• Gifts over $100,000 must be reported on Form 3520.

• Receiving money from non-U.S. persons (outside the US) generally has no tax implications.

• The reporting threshold for gifts from foreign entities is around $17,000.

• IRS penalties for non-filing can be significant, up to 25%.

• Late filing of Form 3520 may allow for a reasonable cause statement.

• Exceptions exist for qualified tuition and medical payments.

• Consulting with financial experts is crucial when receiving large gifts.

• Understanding covered expatriate status is important for tax implications.

Episode Links & Resources

• Ep 08: What Is English For "Domicile?"

• Ep 18: What Is English For "Situs?"

• Ep 22: What Is English For "Covered Expatriate?"

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

IRS expects you to report your overseas or foreign assets when you file taxes if you are a US tax resident (US citizen, Green card holder, or you meet the substantial presence test).

Many people are unaware of the requirements, and the IRS seems to acknowledge this.

IRS has come up with an amnesty program, which allows you to catch up and be tax compliant if you haven't reported your overseas assets.

In this episode, we discuss the process, known as "Streamlined Filing," and explore the penalties involved, if any, as well as the proper steps to follow.


Episode Links & Resources

• Ep 13: Mitigating Double Taxation

• Ep 04: Substantial Presence Test (SPT)

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

In this heartfelt episode,  we celebrate Mother's Day by reflecting on the lessons learned from our mothers, particularly in the context of financial education and cultural influences.

We discuss the unique challenges faced by immigrant mothers in raising children in a new country, the importance of open conversations about money, and the role of mentorship in empowering the next generation. 

The conversation emphasizes the universal values of motherhood and the significance of sharing knowledge across generations.

Some key takeaways

• Lessons from our mothers often include important financial wisdom.

• Cultural influences can change the way we approach motherhood.

• Navigating parenting as immigrants presents unique challenges.

• Open conversations about money are crucial for financial literacy.

• Adapting financial lessons for the next generation is essential.

Tune in to find out who is saving for their daughter's wedding, just like their mother did.


Episode Links & Resources

• My Mom Is Not Afraid To Talk About Money

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 

How do you find a good financial planner?

We share personal experiences and insights on the importance of cultural sensitivity, qualifications, fee structures, and effective communication in financial advising.

These are the things you want your financial planner to have in addition to cross-border technical knowledge.

We emphasize the importance of advisors understanding their clients' unique backgrounds and financial goals, as well as the fiduciary responsibilities they hold.

This will help you find the best financial advisor for your specific situation.

Key Takeaways on finding the right advisor for your cross-border needs

• Look for cultural sensitivity

• Look for advisors with CFP certification for quality assurance.

• Understand the fee structure.

• Ensure their communication will help you understand complex financial concepts.

• Ensure they are a fiduciary - put your interests first.

• Agree on how you define financial success and much more.

Episode Links & Resources

• Ep 37: How To Find The Right Tax Pro For Your Cross-border Needs

• Ep 31 Five Important Financial Planning Questions For Foreign-Born Families

• A Prospect's First Visit - Nightmare Os The Start Of Something Beautiful

• Kitces: Navigating Challenges Investing For Nonimmigrant Visa Holders

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

If you'd like to work with us on your finances or taxes, check out the process 

There is a huge difference between the gift and estate tax. This is highly magnified based on your immigration status (U.S. residents and non-resident aliens (NRAs)).

We also explain the annual exclusion for gifts, the unified tax credit, and the importance of tax planning to navigate these complex tax laws.

The conversation highlights the need for careful planning to avoid significant tax liabilities, especially for non-resident aliens with U.S. assets. 

Some Key Takeaways

• A gift tax is applicable during the lifetime of the giver.

• The estate tax is assessed after a person's death.

• The annual exclusion allows gifting up to $19,000 without tax in 2025.

• Non-resident aliens have a much lower exemption of $60,000, while U.S. tax residents have $13.99 million - set to sunset in 2025.

• Planning is crucial to manage tax liabilities effectively.

• Understanding domicile is key for tax implications.

Future episodes will delve deeper into the tax and financial planning strategies that will help with the above.


Episode Links & Resources

• Ep 08: What Is English For "Domicile?"

• Ep 18: What Is English For "Situs?"

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

We discuss the concept of Birthright Citizenship, its historical context, and its implications for foreign nationals in the U.S.

The 14th Amendment defines it.

We explore the ongoing debate surrounding the potential removal of birthright citizenship. We delve into the responsibilities of U.S. citizenship (taxes), which are not being discussed.

We touch on the global perspective of citizenship and the importance of compliance with immigration and tax laws. 

Finally, we give you some practical tips if this situation impacts you, especially if you are on a work visa. 

You are going to need to rely on our super strength - the immigrant mindset to get through this.


Episode Links & Resources

• The Fourteenth Amendment

• Bonus Episode: Post Election  - Thoughts And Mitigating Concerns

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

We've seen a lot of mistakes made by individuals filing taxes, particularly focusing on immigrants, foreign nationals, and green card holders living overseas.

In today's Shortie, we list these critical mistakes, hoping you'll avoid making them.

They range from ignoring taxes, ignoring immigration status, forgetting to report overseas gifts, including foreign dependents, all the way to completing the backdoor Roth wrong. 

We also address those overseas with expired green cards who are ignoring their tax obligations.

If you find yourself in this situation, please contact a tax pro to help you rectify these issues and hopefully avoid what could be a huge tax penalty.

Onto the 10 mistakes. 

Episode Links & Resources

• Ep 34: What is English For "FBAR?"

• Ep 22: What Is English For "Covered Expatriate?"

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.

We discuss the intricacies of Backdoor Roth IRAs, a popular strategy for high earners to contribute to Roth IRAs despite income limits.

We explore the mechanics of the Backdoor Roth and the Mega Backdoor Roth, including eligibility, contribution limits, and tax implications.

We also cover the importance of understanding 401k options, the pro rata rule, and key considerations for executing a Backdoor Roth conversion effectively. 

We address work visa considerations when looking to complete a back-door role or a direct contribution.

We help you think through whether this is for you or not based on your work visa, your country of origin, and where you are likely to be when you finally withdraw the money.

We finally address the biggest mistakes we see when people DIY backdoor roth and the tax preparation that comes after that.

Episode Links & Resources

• Ep 20: What Is English For "Custodial Accounts?".

• Are you Tax-compliant With Your Overseas Assets? - Free Guide - Scroll to the bottom of the page.