We discuss the top five blind spots that foreign nationals often encounter in their cross-border finances.

We cover misunderstandings of your individual financial situation, the risks of false economies, the need to report foreign assets, and more. 

We also touch on cultural adjustment and the importance of being prepared for potential changes in residency/immigration status.

Takeaways

• Don't assume your financial situation is the same as others

• False economy - Pay for professional services

• Your cultural background significantly influences financial decisions.

• Comparing financial systems between countries is just bad

• Foreign assets must be reported to avoid severe penalties.

• Estate planning is essential, regardless of wealth.

• Understanding U.S. tax obligations is crucial for foreign nationals

• Preparation for potential changes in residency is vital. A comprehensive checklist can help plan for cross-border transitions.

Chapters  

• 00:00 Identifying Blind Spots in Cross-Border Finances

• 03:00 Understanding False Economies in Financial Decisions

• 05:51 Cultural Adjustments and Financial Planning

• 09:05 The Importance of Reporting Foreign Assets

• 11:55 Estate Planning Essentials for Foreign Nationals

• 15:11 Preparing for Potential Changes in Residency (immigration status)

Episode Links and Resources

• Ep 45: What Is English For "Streamlined Filing Procedures

• Ep 34: What Is English For "FBAR"

• Top 5 Things To Know About FBAR Filing

• IRS FATCA Thresholds

We discuss the complexities surrounding FBAR and FATCA, two acronyms that often cause confusion and concern for foreign-born individuals.

We explain the importance of compliance with these regulations, the filing requirements for U.S. citizens and U.S. tax residents (includes foreign nationals on work visas), and the potential penalties for non-compliance.

And yes, the IRS knows about your overseas assets. We also cover the amnesty programs available for those who have missed reporting their foreign accounts.

Takeaways  

• FBAR and FATCA are crucial for foreign-born individuals.

• Filing the FBAR form is mandatory if accounts exceed $10K.

• FATCA requires reporting of foreign accounts to the IRS.

• Banks report account information to the IRS under FATCA.

• Non-compliance can lead to significant penalties.

• Amnesty programs exist for those who missed filings.

• IRS is aware of foreign accounts through intergovernmental agreements.

• Rectifying non-compliance is possible and essential (But don't DIY)

Chapters  

00:00 Understanding FBAR and FATCA

03:16 The Importance of Compliance

07:57 Filing Requirements for U.S. Citizens Abroad

12:25 Amnesty Programs and Penalties

14:56 Rectifying Non-Compliance

Episode Links & Resources

Ep 45: What Is English For "Streamlined Filing Procedures”?

Ep 34: What Is English For "FBAR"?

Top 5 Things To Know About FBAR Filing

IRS FATCA Thresholds.

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

The IM Café Finance / Tax Roastery  (Store) Is Live


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 

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 Part 1 of this podcast, we discussed figuring out your "why", for wanting to retire abroad, the residency/visa requirements, and the practical aspects of moving overseas. 

In Part 2 of this episode, we answer specific tax and financial questions. Some examples of the questions (amongst others) that we answer here are: -

• Do I still need to file U.S. taxes when overseas, and what does that entail? What about State taxes?

• How do I access my retirement income from overseas? How do I get my RMDs?

• Will my custodian allow a foreign address? How do I transfer my funds from the U.S.?

• Should I roll over my 401k to a rollover IRA before I leave the U.S.?

• Will I have enough SS credits to claim social security from abroad?

• Should I buy a home overseas?

• What about healthcare expenses? How do I deal with that?

• Are there other countries you should consider besides the usual?