In the United States, the traditional tax filing season runs from January to April each year. During this period, taxpayers need to prepare all financial forms and spend a certain amount of time to file with the U.S. government before April 15. Late or insufficient tax payments may incur penalties (unless a special situation is reported with a request for an extension), and could even violate U.S. law. How can new immigrants minimize expenses during the tax filing process?
1. Simple Income and Self-Filing
For individuals with relatively simple income, self-filing can be the most cost-effective method, saving the expense of hiring a professional accountant. Once familiar with the filing process, individuals can handle it themselves each year, which is beneficial for simple tax declarations and personal financial planning.
We recommend three popular tax software options: TurboTax, H&R Block, and TaxACT for taxpayers' reference.
Software features include: e-filing capabilities, importing various required forms, ensuring accuracy in tax calculations, identifying audit risks, providing suggestions, and offering different methods for receiving tax refunds, among others.
2. How to Save Taxes on Rental Properties
For those who rent out properties, it is essential to keep receipts for expenses related to the rental property, such as maintenance costs and labor fees. These expenses can be deducted from rental income. Avoid cash payments for these expenses, as without receipts, deductions cannot be claimed.
When renting out a property, one can also utilize "bonus depreciation" to save on taxes. Properties depreciate each year, and when rented, the depreciation can be significantly higher than the normal depreciation amount. This increases the amount of depreciation and maintenance expenses that can be deducted from rental income, thereby reducing the taxes the landlord must pay on rental income. In other words, the landlord's income from renting is increased.
3. Tax Deferral Methods for Home Purchases
If you plan to sell an investment property and buy a new one, the "1031" tax deferral method can be utilized. This method allows for the deferral of taxes based on the time difference in the sale and purchase of properties. After selling a property, the purchase must be completed within a specified time frame, and the new property must be an investment property, not a primary residence. The new property must be of equal or greater value than the old property, allowing for the deferral of taxes that the landlord would otherwise have to pay until the new property is sold.
4. International Students in the U.S. Must File Taxes
International students in the U.S. are required to file taxes regardless of whether they have a job. If they have wages, they must file federal, state, and local taxes. If they do not have wages, they must fill out the relevant forms, and state taxes can be ignored. It is recommended that international students contact their school's relevant department, which may provide free services or tax software and guidance for filing taxes.
5. Tax Filing for High Net-Worth Individuals
For high net-worth individuals, it is advisable to conduct tax filing under the full planning of professional lawyers and accountants.
As a leading institution in U.S. investment immigration, WorldWay Immigration is dedicated to selecting high-quality projects for high-end clients. The professional and attentive services provided by WorldWay Immigration permeate every detail of the investor's immigration process to the United States. Upon the client's first arrival in the U.S., the WorldWay customer service center will provide comprehensive assistance for settling in, including: arranging airport pick-up for the first entry; assisting with bank account opening procedures; helping to apply for a Social Security card; assisting with hotel bookings; helping to purchase flight tickets to the U.S.; assisting in contacting driving schools and providing information on driver's license exams; assisting in contacting moving services; assisting in contacting real estate agents; and assisting with rental or purchase of housing, among other related matters.
In addition, WorldWay Immigration regularly holds various immigration-themed seminars based on client needs, including tax planning seminars for successful clients who have immigrated to the U.S., professional tax consultation services provided by tax experts, and addressing all tax and asset allocation questions for clients after immigrating to the U.S. For more information, please call: 400-138-2929.
