The IRS recently made important changes to the Child Tax Credit which will enable many families to receive advance payments of the credit starting July 2021. Here is what you need to know about the 2021 Child Tax Credit and its impact on your mobility program.
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Author Jennifer Stein
Jen has over 25 years of experience in expatriate and foreign national tax preparation and consulting. She joined GTN in 2011 and serves as Managing Director. While clients' projects may look similar on paper, she understands that every employee situation is unique. She coaches clients to understand the complexities of sending employees overseas and helps them work through the many requirements of Home and Host reporting. jstein@gtn.com | +1.312.698.9864
Domestic Tax Issues to Consider for Work Anywhere Employees
on October 30, 2020
| By Jennifer Stein
|
Mobility Tax,
COVID-19,
Work Anywhere,
Remote Workers,
Work-From-Home
The COVID-19 pandemic continues to have a global impact. While we settle into the new “normal” of working anywhere, new questions related to domestic taxation have been uncovered.
Mobility program managers are continuously having to evolve and adapt to new circumstances, and are doing so now more than ever. Additionally, mobility programs and program managers need to remain flexible as COVID-19 continues to impact the world. Both companies and their employees are adapting to this “new world” and finding a new work-life balance while governments are continuing to make decisions to provide economic stimulus and stabilization.
Employers are increasingly turning to mobile employees to fulfill their international staffing needs, but many companies fail to understand the complexity, costs, and compliance obligations that result from cross-border employment. The following are common mobility tax mistakes we encounter the most that are made by employers with mobile employees and tips for avoiding them.
If you have employees working outside the United States who are US citizens or permanent residents (i.e., a green card holder), these individuals will need to continue filing US tax returns to declare all of the income they earn in both the United States and their Host country. This requirement does not change if they are employed or paid from a non-US employer. Additionally, most of the tax rules that apply to taxpayers living in the United States will also apply to US persons operating overseas. The result may be that an overseas employee will be subject to tax in both the US and other jurisdictions.
