Certified Public Accountant, CPA

Certified Public Accountant, CPA

Certified Public Accountant, CPA

Rama Tax Services is a tax firm that is dedicated to providing our clients with top notch quality service. We are commited to a quick response time that will deliver complete and accurate tax returns for an afforable price. The firm only hires people that are qualified Certified Public Accountants (CPA's). We take pride in what we do!

Tax Return Calculator Create FREE Account (Registered FREE To Check How Much You Receive If You Filed a Tax Return Form ?) Brief Explanation of How the Program Works

The United States is one of the few countries that requires its citizens to report and pay tax on their world wide income, no matter where they live. This means that even if a U.S. citizen lives in a foreign country they still have a filing requirement just as much as somebody who lives in New York City. This is true even if the U.S. citizen never even took one step in the United States and all of his income is from the foreign country that he lives in.

At first this seems like a burden, and even worse it seems as if one is subject to paying double tax, one to the country of residence and then to the United States. However, this is not so in many cases. Actually it could be a very big benefit having a U.S. tax filing requirement.

Why is that? The Internal Revenue Service (the U.S. department of collecting tax) recognizes tax paid to the country of residence as a credit to the tax owed to the United States on that income. This is called the Foreign Tax Credit. This means that for every dollar one pays to his foreign country, his tax to the United States is reduced. Since the United States has one of the lowest tax rates in the world, in many cases there is no tax remaining that is owed to the United States.

Click here to learn more about the Foreign Tax Credit

Okay, so there is no tax owed to the United States but what is the benefit of filing a tax return?

There are several refundable credits that many people are eligible for. A refundable credit means that even if you owe no tax (due to the foreign tax credit, as mentioned above or other reasons) the IRS will send you money equal to the amount of the refundable credit.

So what are these refundable credits?

One is the Child Tax Credit; the other two are the Recovery Rebate Credit and the Making Work Credit.

The Child Tax Credit applies to all years. Recovery Rebate Credit is only for the 2008 tax year and Making Pay Credit is for 2009 and 2010 tax years.

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