American expats working in Singapore need to keep in mind a few points when filing their taxes, such as using the Foreign Earned Income Exclusion and Housing Exclusion provisions and claiming a Foreign Tax Credit on Form 1116.

There are also US expat tax treaties in place that can help mitigate double taxation risk.

Feedback on the topic from Derren Joseph - (HTJ.tax American tax service specializing in US tax Singapore). 

1. Understand Your Obligations

US citizens residing in Singapore need to keep various tax considerations in mind when filing returns in the US, given its citizenship-based taxation regime. Expats should consult a professional to ascertain whether or not filing returns in the US is required, as well as which forms they need to submit.

As with other Americans, US expats living in Singapore generally must file taxes under similar regulations as other Americans, but their tax liabilities may differ wildly based on various circumstances. If an expat meets the Bona Fide Residence test and qualifies for either Foreign Earned Income Exclusion or Foreign Housing Exclusion relief provisions, their U.S. tax liabilities could potentially decrease significantly.

Singapore's Inland Revenue Authority taxes all income - except investment income and employer-provided benefits - earned in Singapore or remitted into it, such as salaries, dividends and interest. Furthermore, duties on imports and exports such as excise duties and value-added taxes may apply as well.

An individual living in Singapore who is also a US citizen will pay approximately 7% in total taxes on their income -- this includes earnings made both within Singapore and remitted back home - in addition to being required to make contributions towards both sets of social security schemes, potentially leading to double taxation.

US expats living in Singapore should utilize strategies to minimize their tax liability. They could take advantage of Singapore's tax treaties to eliminate double taxation; or use exemptions and deductions like Foreign Earned Income Exclusion, Foreign Housing Exclusion or the Foreign Tax Credit to lower their burden.

IRS offers an option known as Streamlined Filing Compliance Procedures that helps those who haven't met their US expat filing obligations catch up without incurring penalties, making this program especially helpful for US citizens living overseas who have yet to file their return with them. But before taking advantage of it, individuals will first need to formally certify they're compliant with all reporting obligations before participating.

2. Maximize Your Benefits

Singapore, one of the most vibrant economies worldwide, makes for an attractive expat destination. Offering high quality of life and business opportunities as well as low taxes compared to many US states, Singapore offers American expats plenty of incentive to relocate. There are various exemptions and credits that may help reduce tax liabilities when filing US taxes while living overseas.

Most Americans are unaware that all income earned abroad is subject to US taxes regardless of where it's earned; due to citizenship-based taxation in place here, all US citizens and green card holders must file annual returns with their federal authorities.

Filing deadline for most taxpayers is April 15th (or 18th if filing electronically). The IRS allows American expats in Singapore and other foreign countries living here to utilize a special form known as Foreign Earned Income Exclusion or Foreign Housing Exclusion to reduce taxable US income, while also minimising double taxation by offsetting foreign income tax paid or accrued abroad.

As well as taking advantage of FEIE and Foreign Tax Credit, American expats in Singapore can also take advantage of other deductions and credits available to them. Americans may deduct medical and childcare expenses as deductions when filing their federal returns; interest earned on foreign bank accounts can also be claimed back as deductions; self-employed individuals can deduct expenses related to running businesses as deductions on their tax returns.

Expats from America living in Singapore may take advantage of lower living costs and more favorable social security taxes, with residents contributing a portion of their earnings into a CPF MediSave Account similar to Social Security here in America. Furthermore, Singapore provides extensive public transportation systems as well as boasts an elite workforce.

As a result of its low crime rate and cleanliness, Japan is considered a safe haven for expats living and working abroad. Unfortunately, however, Americans living abroad may not understand their US tax obligations while living overseas and miss important deadlines or pay incorrect amounts of taxes; fortunately the IRS offers simplified filing compliance procedures designed to help US expats catch up and avoid penalty fees.

3. Take Advantage of the Streamlined Filing Compliance Procedures

US expats living and working in Singapore face particular tax considerations that differ from the United States. While Singapore is known for its global culture and vibrant business scene, its citizens and residents also face taxes that differ significantly. Therefore, any American living in Singapore must collaborate closely with a U.S. tax expert in order to remain compliant with their federal and local taxes.

Singapore operates a territorial tax system, taxing only income generated within its borders; yet Americans living there still must file an annual federal return due to citizenship-based taxation by the US - this means expats must pay taxes based on worldwide income.

Expats may be able to reduce their US tax bill by taking advantage of provisions like the Foreign Earned Income Exclusion (FEIE) or Foreign Housing Exclusion (FHE), both of which allow expats to deduct up to an annual maximum amount - $107,600 in 2020). To qualify for these deductions they must either pass either the physical presence test or bona fide residence test.

Additionally, the IRS provides other ways for Americans living abroad to lower their US tax liability, including using foreign tax credits and deducting certain foreign housing expenses on their federal returns. These deductions may help offset any taxable income generated by US expats residing in Singapore.

To file their tax return in Singapore, most Americans require the services of an experienced international tax specialist. These professionals can ensure you file correctly while maximizing benefits and avoiding potential penalties due to late filing or nonpayment of taxes.

Contact Bright!Tax today if you are a US citizen or green card holder living in Singapore looking for more information about filing your tax return with Bright!Tax. Our qualified CPA will assess your situation and discuss how best to file. One of our experienced specialists will also be glad to offer advice as to which approach is the most suitable to preparing a return for you.

4. Prepare Your Tax Return

Singapore, known for its global culture, clean streets and Michelin-star street food is an increasingly popular working overseas destination for Americans. As its economy booms further, more American expats are moving there to take advantage of all that Singapore offers them. Unfortunately, not all US citizens or green card holders living there know their tax obligations to the US; but don't fret: there is an easy way around double taxation without losing out on enjoying its many advantages!

IRS offers several favorable tax treatments for US expats living in Singapore. These include the foreign earned income exclusion and foreign tax credit programs. But remember: These tax advantages only apply if you file a valid US expat return; anyone whose income surpasses filing thresholds must file. If unsure whether this applies to you, seek advice from a professional tax advisor on what responsibilities lie ahead for you.

Filing deadline for US expat tax returns in 2018 is April 15. However, you can request an extension up until October 15. Additionally, professional services can help prepare and file your return.

Filing US expat taxes can be an intimidating task for Americans living abroad and working long-term; especially those working for extended periods. People often lose track of their taxable income, fearful that the IRS will contact them and demand payment; however, thanks to numerous compliance measures implemented by the IRS to make filing easier while remaining compliant with US laws.

Fear of double taxation can be a common worry among expats living abroad, especially Americans living in Singapore. But double taxation doesn't have to be inevitable: take advantage of foreign earned income exclusion and foreign housing exclusion measures to minimize your exposure.

Also, you may be able to reduce your US taxable income by claiming foreign taxes paid or accrued on Form 1116. For assistance completing this step correctly, it would be advisable to seek advice from an experienced international tax expert.