Most U.S. citizens and green card holders are required to file an annual form 1040 (tax assessment) and Foreign Bank Account Report (FBAR / Fincen Report 114) statements.
Documents required for the annual 1040 tax assessment report:
- Annual salary summary for salaried employees
- Tax assessment filing from your local country
- Self employment ; submit your income and expense report, depreciation schedule, and record of estimated payments to the IRS.
- Investment summary of annual interest, dividends, capital gains, etc
- Foreign mutual funds – statement of transactions bought and sold. For any sales, we need the report(s) of when the funds were purchased.
- Other sources of income that also needs to be reported, including:
- Rental income; submit summaries of income and expenses(maintenance, insurance, mortgage interest, renovations, etc), rental contracts, and purchase contracts, Israeli income tax paid
- Fund withdrawals: statements of withdrawal from any tax deferred savings.
- Other income: maternity leave, unemployment compensation, etc
- Corporation (foreign) – annual financial reports, incorporation statement, schedule of ownership, annual Israeli tax filing
- Inheritance – report the following details: name of, relationship to, citizenship status (US) of the deceased; date(s) of transfer, amounts and currencies; (provide documents)
- Gifts – full details of the transaction including a letter of explanation from the giver of the gift.
- US based income – forms 1099, W-2, K-1, 1042-S
- Other income – you are required to report 100% of world-wide income. If you have any additional sources of income then please submit the relevant documents, details, and explanations.
- Additional documents that could lower tax due or help generate a refund include:
- Tuition payments to eligible University ; submit 1098 if available
- Child care expense (Provider name, address, ID number, amount paid)
- Changes in family or life situation – marriage, divorce, change of address. For new children born, submit copies of the SSN card, citizenship document, and Israeli birth certificate (with English).
- Note – in the case of divorce or separation, then the right to claim children as tax dependents will need to be discussed and established.
FBAR and FATCA form 8938
All non-US accounts must be included on FBAR and form 8938. These include:
- Bank accounts – checking, savings, other; submit statements of the maximum annual balance
- Note – include details of ownership or signature authority
- Pension accounts – submit the annual statement
- Provident accounts – submit the annual statement
- Life insurance – submit the annual statement