Radio Baghdad

Listen To Live Radio
Now Playing
Dec, 08 2024
Popular Articles
iraqi-economic-development-strategies

Iraqi Economic Development Strategies


Part IAs Iraq moves through its next developmental phase...516265
amer-fatuhi-interview-2020

Amer Fatuhi - Interview 2020


An exclusive interview with the Prominent Scholar Dr. Amer Hanna...194428
healthy-food

Healthy Food


Like any other product, healthy foods need to be marketed...44797
who-killed-soad-hosny

Who Killed Soad Hosny?


The family of the late Egyptian actress, the Cinderella of Arab...28805
us-launches-cruise-missile-strike-on-syria

US Launches Cruise Missile Strike on Syria


On President Donald Trump's order, two Navy destroyers in the...24104
the-iraqi-british-architect-zaha-hadid

The Iraqi-British Architect Zaha Hadid


“I am the product of an amazing Iraqi environment and an...23147
iraqi-parliament-denies-a-local-detroit-winner-christian-of-the-iraqi-national-flag-contest

Iraqi Parliament Denies a Local Detroit Winner (Christian) of the Iraqi National Flag Contest!


The Iraqi Government is working on adopting a new National Flag...22692
a-new-rare-guest-at-baghdad-zoo

A New Rare Guest At Baghdad Zoo


Baghdad’s municipality has announced the birth of what it says...21424
iraqi-economic-development-strategies-part-ii

Iraqi Economic Development Strategies, Part II


DIVERSIFICATIONIraq is currently a rentier state. By...20274
rxte-black-holes-pulsars-oh-my

RXTE - Black Holes & Pulsars - Oh My!


Black holes and pulsars are two of the most mysterious (and...19883
the-chaldean-renaissance

THE CHALDEAN RENAISSANCE


Basic Outline of a Vision By Bishop Mar Sarhad Y. Jammo  I-...19763
iraq-country-profile

Iraq country profile


Iraq, in an area once home to some of the earliest...19485
review-of-amer-hanna-fatuhi-the-untold-story-of-native-iraqis

Review of Amer Hanna-Fatuhi: THE UNTOLD STORY OF NATIVE IRAQIS


Review of Amer Hanna-Fatuhi:THE UNTOLD STORY OF NATIVE IRAQIS:...18786
unesco-iraq-best-practices-in-education-reform

Unesco & Iraq - Best Practices In Education Reform


UNESCO Office for Iraq In the framework of the Iraqi Public...18642
oil-exports-decline-to-cause-deficit-in-2014-budget-says-sa-ad

Oil exports decline to cause deficit in 2014 budget, says Sa’ad


Baghdad (IraqiNews.com) Member of the parliament Oil &...17016
islam-karimov-turkey-announces-uzbek-leader-s-death

Islam Karimov: Turkey announces Uzbek leader's death


Uzbek President Islam Karimov, one of Asia's most...15174
iraqi-dentist-suhair-al-qaisi-the-most-beloved-media-face-in-the-arabic-speaking-world-screen

Iraqi Dentist Suhair al-Qaisi, The Most Beloved Media Face in the Arabic Speaking World Screen!


Introduction: Suhair al-Qaisi was born in 1985 in Baghdad, Iraq...14735
1 1 1 1 1 1 1 1 1 1 Rating 5.00 (2 Votes)

The next time you hear people say they'll flee U.S. soil if so-and-so wins the presidential election, ask if they're familiar with the financial life of an expat.


Sarah O'Brien, special to CNBC

Financial advisors say that, regardless of the reason a person wants to move abroad, it's important to know that laws, tax obligations and banking policies can add complications to your personal finance picture.

"Find out if you will be able to transact financially in the foreign jurisdiction you're looking at," said certified financial planner Kashif Ahmed, founder and president of American Private Wealth. "It's a very serious thing to consider before just picking up and leaving the country."

An estimated 8.7 million U.S. citizens already live abroad, scattered across more than 100 countries. For some of them, banking as an American has become more difficult since the U.S. government began relying on foreign financial institutions several years ago for help in its battle against money laundering and tax evasion.

"There are a lot of issues that Americans overseas face, and it isn't easy," said Marylouise Serrato, executive director of advocacy group American Citizens Abroad.

"We're trying to address some of [the complications] through regulatory change."

Specifically, Serrato's group is working to get changes made to the 2010 Foreign Account Tax Compliance Act.

Commonly called FATCA, it requires foreign financial institutions — banks, insurance companies, stock brokerages, hedge funds, trusts, etc. — to file formal reports about accounts held by American citizens, whether they live in the United States or abroad. The penalty for noncompliance is a 30 percent withholding on any U.S. investments held by the institution.

On top of the FATCA requirements, increased U.S. enforcement of existing know-your-client rules has led to higher compliance hurdles that some U.S. banks and brokerages have simply chosen not to face. Additionally, European regulation regarding some types of nonresident investments has chilled the mutual fund industry's interest in selling to Americans overseas.

The result has been a reduction both at home and abroad in banks willing to service accounts owned by a U.S. citizen.

"Banks are taking the logical defense: Is it worth it to us to maintain this client base when we have to make sure every one of them is compliant?" Serrato said.

While numbers of Americans affected are hard to come by, it's been enough to warrant attention from the Treasury Department, which met last year with Serrato's group to hear one solution to the reporting requirements.

The ACA supports modifying FATCA to allow a "same country exemption," which would exclude foreign accounts from reporting requirements if the account were held by a bank in the country where the person lives.

"Americans abroad might have an account that that the IRS considers offshore, but to the American it's not offshore, because they live where the account is held," Serrato explained.

She also said that, anecdotally, she's heard there's an uptick in talk among the group's members that their overseas mortgages are the latest thing to be affected by U.S. law.

In some countries, mortgages are renewable after a set time. And although the Treasury Department apparently has assured the international banking community that mortgages fall outside reporting requirements, some expats have faced mortgage cancellation at renewal.

"Because Treasury says mortgages aren't reportable, what we're seeing is only a fear issue," Serrato said. "Someone in the bank hierarchy has a fear that mortgages will somehow be included in reporting requirements."

FATCA also requires U.S. citizens with foreign financial assets above certain thresholds — depending on your tax filing status — to report those assets every year with your annual tax returns.

You can bank on it

And then there's the Foreign Bank Account Report, or FBAR. Expats with foreign bank accounts whose assets reach more than $10,000 during the year must file an FBAR, whether they owe any taxes or not.

Instituted in the 1970s, FBAR requirements were routinely ignored and unenforced until more recently as part of the government's crackdown. "You are really reporting everything on one form or another," Serrato said.

To avoid the troubles with banking, some expats make sure they maintain a U.S. address. But if it's not genuine, your bank will close your account if they find out.

A better idea might be to find a financial institution that caters to military and government employees abroad. American Citizens Abroad is one group whose membership includes access to the State Department Federal Credit Union, Serrato said.

Aside from banking issues, another aspect of life as an American expat can't be avoided: filing U.S. taxes. The United States is the only developed country that requires its citizens to pay income taxes even when they live overseas.

And while tax treaties with many countries can reduce or eliminate your tax burden, failing to file an annual return will incur interest charges and late-payment penalties. State tax returns might also need to be filed, depending on the rules of your state.

Also, be aware that even some foreign retirement plans that are set up similarly to individual retirement accounts aren't recognized as tax-exempt by Uncle Sam.

Also check the tax treaty with your new country to avoid surprises, like discovering that your tax-sheltered 529 college savings plan in America is subject to taxes in a different country.

While finances are only one aspect of life overseas, experts say preparing beforehand can save you myriad headaches after you've left America.

"Sit down with your tax or financial advisors," Serrato said. "Understand your tax obligations for the jurisdiction and the United States, and make sure your advisors can explain everything you need to consider [about your investments] before you move overseas."


— By Sarah O'Brien, special to CNBC.com

Add comment



Anti-spam: complete the task
An exclusive interview with the Prominent Scholar Dr. Amer Hanna Fatuhi By Uruk Shendaj  
Lessons from Iraq’s War 2003 - 2011 Despite the fact that there are almost 2000 spoken Arabic dialects in the Arabic [...]
Sun, Rain, & Loving Heartbeats The Art of Annie Salatyan
When it comes to life, Iraq is the first and the final frontier for all humanity. This is a fact no maters how many [...]
  A New Achievement by the Historian & Visual Artist Amer Hanna Fatuhi   The Eastern Aramaic Font | The [...]
The Art of AMER HANNA FATUHI Artist, Poet, & Professional Writer - Short Bio
Amer Fatuhi - Interview June 2017 by Annie Salatyan
DoD Linguists' recruitment With Amer Fatuhi
اعتراف - Confession by Amer Fatuhi
شكرا - Thank You by Amer Fatuhi
دال - Dal by Amer Fatuhi
موهومه - Delusional by Amer Fatuhi
On President Donald Trump's order, two Navy destroyers in the eastern Mediterranean Sea fired salvos of Tomahawk [...]
The Yale University Art Gallery is celebrating the 175th anniversary of the field of Arabic studies at Yale [...]
دندنه - Dandana by Amer Fatuhi
More Articles
the-art-of-amer-hanna-fatuhi

The Art of AMER HANNA FATUHI


The Art of AMER HANNA FATUHI Artist, Poet, & Professional...6690
a-new-achievement-by-the-historian-visual-artist-amer-hanna-fatuhi

A New Achievement by the Historian & Visual Artist Amer Hanna Fatuhi


  A New Achievement by the Historian & Visual Artist Amer...8776
life-wins-amer-hanna-fatuhi

Life Wins - Amer Hanna Fatuhi


When it comes to life, Iraq is the first and the final...9983
carlos-santana-pokes-beyhive-says-beyonce-not-a-singer

Carlos Santana Pokes Beyhive, Says Beyoncé ‘Not a Singer’


UPDATE: On Tuesday night, Santana walked back his comments...8178
russia-s-putin-calls-leaked-trump-memos-utter-nonsense

Russia's Putin calls leaked Trump memos 'utter nonsense'


Russian President Vladimir Putin has described allegations his...7025
us-election-2016-results-meet-president-trump-s-possible-cabinet

US election 2016 results: Meet President Trump's possible cabinet


It's Washington DC's favourite new parlour game - guessing who...6982
us-election-trump-presidency-dangerous-says-un-rights-chief

US election: Trump presidency 'dangerous', says UN rights chief


Donald Trump's "deeply unsettling and disturbing" views make...7355
hurricane-matthew-strongest-storm-since-2004-nears-florida

Hurricane Matthew: Strongest storm since 2004 nears Florida


Hurricane Matthew has strengthened as it nears a "direct hit"...12990
new-jersey-train-crash-many-injured-at-hoboken-station

New Jersey train crash: Many injured at Hoboken station


A commuter train has crashed into a rail station in the city...12040
remembering-september-11th

Remembering September 11th


We Will Never Forget … We Will Never Forgive Please Tell...6447
trump-pledges-big-us-military-expansion

Trump pledges big US military expansion


Donald Trump has said he will expand all areas of the US...6932
happy-labor-day

HAPPY LABOR DAY


  THE WAR BETWEEN GOOD & EVIL IS NOT OVER YET! Do not...6567
islam-karimov-turkey-announces-uzbek-leader-s-death

Islam Karimov: Turkey announces Uzbek leader's death


Uzbek President Islam Karimov, one of Asia's most...15174
rio-olympics-2016-did-brazil-pass-or-fail-its-big-test

Rio Olympics 2016: Did Brazil pass or fail its big test?


Billed beforehand as the "Carnival Games" full of happy fans,...6420
oil-price-gushers-as-opec-brings-bulls-back-into-market

Oil price gushers as OPEC brings bulls back into market


Oil prices surged dramatically in the last two weeks thanks to...11215
trump-to-lay-out-plan-for-combating-radical-islamic-terrorism

Trump to lay out plan for combating radical Islamic terrorism


Donald Trump on Monday will lay out his strategy for defeating...7812
putin-offers-turkey-s-erdogan-closer-ties

Putin offers Turkey's Erdogan closer ties


Russia is ready to restore economic co-operation and other...11976
trump-is-chagrined-and-realizes-his-campaign-is-in-trouble-steve-forbes-says

Trump is ‘chagrined' and realizes his campaign is in trouble, Steve Forbes says


Donald Trump has an opportunity to get his campaign back on...9682
yusra-mardini-refugee-swimmer-off-to-flying-start-after-pope-francis-sends-letter

Yusra Mardini: Refugee swimmer off to flying start after Pope Francis sends letter


(CNN) Ahead of competing at the Olympic Games in Rio de...9779
here-s-what-the-real-unemployment-rate-looks-like

Here's what the real unemployment rate looks like


The U.S. unemployment rate remained at 4.9 percent in July,...10750
emirates-plane-crash-lands-at-dubai-airport

Emirates plane crash-lands at Dubai airport


An Emirates plane has crash-landed at Dubai International...11074
a-clinton-bounce-a-trumpian-weekend-how-the-race-looks-now

A Clinton bounce, a Trumpian weekend: How the race looks now


Donald Trump just suffered through a brutal weekend. by Ben...9895
the-moment-american-muslims-have-been-waiting-for-khizr-khan

The moment American Muslims have been waiting for, Khizr Khan


Donald Trump, the GOP presidential nominee, has proposed...8130
obama-endorses-clinton-as-political-heir

Obama endorses Clinton as political heir


US President Barack Obama has delivered a stirring speech at...7018