The International Money Café Show

What's NIIT? We discuss NIIT (Net Investment Income Tax), explaining its implications for individuals with investment income and also how it applies in cross-border situations.  We cover the statutory thresholds for the tax, what constitutes net investment income, and the reporting requirements. We also touch on some fascinating recent court cases that have impacted the application of the NIIT for...

Things are bad in the U.S., should I move my money overseas? We explore this question that has come up a couple of times, due to the economic uncertainty.  We include tariffs, market volatility, the practicalities of fund transfer, and financial goals as items to consider. Key Takeaways Moving money overseas can be complicated and requires an understanding of regulations. Exchange rates and compli...

How long do you keep your tax records? A shortie that packs a punch. We discuss how long you should retain your tax and other financial records.  We explore the statute of limitations for tax records, the importance of supporting documents, and special considerations for non-residents and property sales.    Some takeaways Keep copies of all your tax records for as long as necessary. The statute of...

Your uncle just sent you a ton of money from overseas - what are the tax implications? We discuss the complexities of gift taxes, particularly for individuals receiving gifts from overseas. We explore the annual gift tax exclusion, reporting requirements for large gifts, and the implications of receiving money from non-U.S. persons. The conversation also touches on exemptions to reporting requirem...

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 asse...

In this heartfelt episode,  we celebrate Mother's Day by reflecting on the lessons learned from our mothers, particularly in the context of financial education and cultural influences. We discuss the unique challenges faced by immigrant mothers in raising children in a new country, the importance of open conversations about money, and the role of mentorship in empowering the next generation.  The...

How do you find a good financial planner? We share personal experiences and insights on the importance of cultural sensitivity, qualifications, fee structures, and effective communication in financial advising. These are the things you want your financial planner to have in addition to cross-border technical knowledge. We emphasize the importance of advisors understanding their clients' unique bac...

There is a huge difference between the gift and estate tax. This is highly magnified based on your immigration status (U.S. residents and non-resident aliens (NRAs)). We also explain the annual exclusion for gifts, the unified tax credit, and the importance of tax planning to navigate these complex tax laws. The conversation highlights the need for careful planning to avoid significant tax liabili...

We discuss the concept of Birthright Citizenship , its historical context, and its implications for foreign nationals in the U.S. This is a topic that's coming up a lot. The 14th Amendment defines it. We explore the ongoing debate surrounding the potential removal of birthright citizenship. We delve into the responsibilities of U.S. citizenship, specifically taxes, which are often not discussed. W...

We've seen a lot of mistakes made by individuals filing taxes, particularly focusing on immigrants, foreign nationals, and green card holders living overseas. In today's shortie, we list these critical mistakes, hoping you'll avoid making them. They range from ignoring taxes, ignoring immigration status, forgetting to report overseas gifts, including foreign dependents, to completing the backdoor...

We discuss the intricacies of Backdoor Roth IRAs, a popular strategy for high earners to contribute to Roth IRAs despite income limits. We explore the mechanics of the Backdoor Roth and the Mega Backdoor Roth, including eligibility, contribution limits, and tax implications. We also cover the importance of understanding 401k options, the pro rata rule, and key considerations for executing a Backdo...

There is more than one type of individual retirement account (IRA). In this episode, we focus on the different types, including Traditional, Roth, SEP, SIMPLE IRAs, and spousal IRAs. We explore each type's tax advantages, eligibility, and implications, especially for individuals with cross-border considerations. The conversation also covers important aspects such as distributions, rollovers, conve...

Tax season is around the corner. If you are looking for a new tax professional, we have you covered. In today's episode, we are going to walk you through how you select a good tax professional, especially if you have cross-border needs or assets overseas.  The ten items or tips to consider as you select your tax professionals. If your tax preparer meets these tips, you are likely in excellent hand...

We discuss Tax Identification Numbers (TINs). We have fun discovering what they are called in various countries. TINs are nine-digit numbers assigned by the Internal Revenue Service (IRS) or the Social Security Administration (SSA) for tax reporting purposes. We discuss the history of TINs and the introduction of the Individual Tax Identification Number (ITIN) in 1996. We also explain the eligibil...

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?...

We discuss the FBAR (Foreign Bank Account Report) and why it is important to be aware of it. It's a FORM that needs to be filed under the Bank Secrecy Act if you have a financial interest or signatory authority over a foreign financial account. And the aggregate value of these accounts exceeds $10,000 at any time during the reporting year. The FBAR filing requirement applies to all types of financ...

There has been an uptick in the number of people looking to retire overseas. In Part 1 of this episode, we discuss the essential considerations for the decision.  We start by grouping those who want to move into the following groups  Those like us, who came to the US ages ago and are now retiring. Those who have worked overseas and now want to return Those who've only visited as tourists. We explo...

What happens to you if you lose a job on a work visa? It's the biggest threat to your financial life in the US. In this short episode, we detail your options based on your specific work visa.  Generally, you have to leave the country in 60 days or less, depending on your visa type, visa stamp, home country, and where you are in the visa process. However, there are some unique nuances regarding you...

The 2024 elections are behind us. In this episode, we discuss the aftermath of the US elections, focusing on the concerns of foreign-born clients and US expats. We explore the uncertainties surrounding immigration laws, visa changes, and the emotional impact of the election results. Our conversation emphasizes the importance of financial preparedness, including maintaining an emergency fund, being...

In this solo episode, Jane Mepham discusses the five questions she asks to create the financial planning framework for foreign-born families. Each question has many nuances and determines which way we go with the plan. Jane believes any foreign-born individual should ask themselves these questions as part of the settling process in the US. Money is tied to all aspects of our lives. What's your Imm...

Yeah, it's not green anymore, but the name has persisted. Do you know why the Permanent Residency Card is called the Green Card? We answer this question and provide many more details about this "magic" document, which permits you to live and work permanently in the US if you are foreign-born. We know quite a bit about it, having previously held this card. We discuss the tax obligations and financi...

Assume that your information is already out there. Your goal is to ensure that nobody misuses your data. In this episode, we discuss the importance of protecting yourself from identity theft. We provide practical steps and tips for safeguarding your personal information and financial accounts.   Key takeaways Place fraud alerts on your credit and consider extended fraud alerts if your identity has...

In this episode, we discuss the various health insurance options available during open enrollment. We break down all the different insurance plans - including PPO, HMO, EPO, and HDHP plans. We discuss the differences in premiums and coverage and the benefits of flexible spending accounts (FSA) and health savings accounts (HSA). The conversation also touches on the implications of Medicare for thos...

Cue the Confetti. Today, we celebrate a huge milestone - a year since we started this journey.  What started as a coffee chat has become a one-year podcast, and there are plans to do more. In this special episode, we look back on our beginnings, lessons learned, and things we've learned about each other, appreciate those who've been with us on the journey, and plan for the future. Please tune in t...

If a U.S. tax resident is investing offshore (outside the U.S.) - it can very easily complicate their taxes. In this episode, we discuss PFICs (Passive Foreign Investment Companies) and the dangers of investing in them. We start by defining them with some examples. Then, we discuss the tax compliance requirements and the potential penalties for non-compliance. We also include financial planning co...