It’s that time of year again – A reminder of the US tax filing deadlines
It’s that time of the year again. The time where US individuals are beginning to think about their 2015 tax year filings. Many people have received their relevant W2’s (or equivalent pay statements reflecting their employment earnings and withholdings), their 1099s related to investment income and 1099s related to taxable pension distributions and reportable rollovers. So, let’s take a moment and review some of the most relevant filing deadlines for US individuals.
Most Americans are required to file their 2015 Federal income tax returns by 18 April 2016 (the traditional 15 April deadline is extended by a few days due to the fact that Washington DC is commemorating Emancipation Day on Friday 15 April). However, if you are a US person who is living and working in the UK (or some other jurisdiction outside of the US), you are entitled to an automatic two month filing deadline extension to 15 June. It is important to note that if you are a US person living in the UK but you still maintain state residency, you should check whether or not your state allows for the same automatic two month extension. If it doesn’t, and you plan to file after 18 April, you may need to remember to apply for a state income tax extension by 18 April.
Individuals who made certain qualifying gifts during 2015 are required to file Form 709, the United States Gift Tax Return. Generally this extends to giving gifts of more than $14,000 per non-spouse individual or more than $147,000 to a non-citizen spouse. Generally, the gift tax return filing deadlines mirror the individual filing deadlines. Any extension of time granted to file your 2015 income tax return will also automatically extend the time to file your federal gift tax return.
It is important to remember that any Foreign Bank Account Report filings (also called FinCen 114 or FBAR) are made separate from your individual tax return filing and currently have a filing deadline of 30 June 2016 for the 2015 tax year. This filing deadline is different from the individual income tax filing deadline and currently there is no ability to file for an extension. Generally, if you are a US citizen or resident and have a financial interest or signatory authority over foreign financial accounts which in aggregate are worth more than $10,000 on any one day during the calendar year, you have a requirement to report the accounts to the US Treasury department through their electronic filing system. While the FBAR is an informational reporting form, failure to file this form on time can result in substantial penalties. So, it is important to remember to make a timely filing regardless of when you file your individual income tax returns.
For more wealth planning tips and tidbits from MASECO read our 39 Steps to Smart Living in the UK.
Risk Warnings and Important Information
The above article does not take into account the specific goals or requirements of individual users. You should carefully consider the suitability of any strategies along with your financial situation prior to making any decisions on an appropriate strategy.
MASECO LLP trading as MASECO Private Wealth is authorised and regulated by the Financial Conduct Authority, the Financial Conduct Authority does not regulate tax advice. MASECO Private Wealth is not a tax specialist. We strongly recommend that every client seeks their own tax advice prior to acting on any of the strategies described in this document.