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Don't fall for this scam letter! Do you notice all the telltale signs of the scam?

A self-employed caterer recently asked me: "I cut my hand while prepping food before a big event, but instead of going to the hospital (which was covered in full by insurance), I paid $500 for a doctor to come to my worksite and stitch up the wound so I could stay on schedule instead of incurring a huge loss and an unhappy customer. Can I deduct that?" Here is the breakdown: Medical expenses are generally considered personal under IRS rules, even if they happen during work ho

Why U.S. Citizens in Israel Should (Almost Always) Sell RSUs at Vesting: If you're a U.S. citizen working in Israel and receiving RSUs from your employer, you've likely heard the advice: "sell at vesting". This is the most effective way to avoid unnecessary taxation and simplify reporting. Here’s why it matters. The U.S. taxes RSUs as ordinary income on the day they vest, based on their fair market value. Israel, however, doesn’t tax RSUs at vesting. Instead, it taxes them wh

RSU cross-border taxation mismatch is not double taxation, and here is why many tax pros get it wrong, with Israel as an example: Many U.S. expats living in Israel who receive RSUs believe, and are often told, that they’re subject to double taxation. Even some tax professionals describe it this way. But while the pain is real, the terminology is not. At first glance, it seems obvious: RSUs are taxed in the U.S. when they vest, and then taxed in entirety again in Israel when s

RSUs aren't a magic investment, they're just taxable salary in disguise. What Are RSUs, really? Restricted Stock Units (RSUs) are simply a form of compensation. Once they vest, they become ordinary shares of company stock, just like what anyone can buy on the market. Generally, many tech companies grant RSUs to employees, hoping the employees will stay and not job hop elsewhere before the RSU Vests (becomes stock). If the employee leaves, they lose the RSUs. When your RSUs ve

If you receive U.S. tax refunds every year, it's very important to open a U.S. bank account as soon as possible. In about two months, the U.S. government will completely stop issuing paper checks.  President Trump signed a new law to eliminate check mailing as a cost-saving measure. For people who never lived in the U.S., opening a regular American bank account online is extremely difficult, since most applications are rejected. The solution is to open a Fintech account that

Fleurette, an 83-year old retiree, came across great difficulty obtaining her 1099-R tax form from an annuity provider each year. In previous years she had to wait hours on the phone, confused about what exactly she needed to obtain and why it had to be so difficult.  Nor did she know how to download it from the online portal of the provider; modern technology was difficult for her to learn.  I found a simple solution for her - she signed a tax info authorization form, which

David had a serious issue. His relative, a tax pro, had prepared his tax return each year, but had unfortunately fallen deathly ill shortly after David had given over his 2024 tax documents. He wasn't sure if the tax return had been filed or not. I taught David how to open an online IRS account and check his official transcripts to see if any return was filed.  Since his relative had always e-filed, we could rule out a paper filed return being stuck in the IRS mile high pile

Can a U.S. Parent Claim the Child Tax Credit When the Custodial Parent Is a Nonresident Alien? Here’s a real world expat tax scenario I’ve encountered: A divorced U.S. citizen father has two U.S. citizen children living abroad full time with their mother. The mother is a nonresident alien with no U.S. tax filing obligation. The father provides most of the financial support. IRS rules say he cannot claim the children as dependents or take the Child Tax Credit unless the custod

How about using an Israeli payroll company to turn your self employed income into a wage? If you have a real business, this isn't possible.  Let me explain: The well know method of using a payroll company to turn self employment income into wages only works if the IRS would consider you to indeed be an employee.  Such as the common non-compliant practice that US companies pay remote workers in Israel on a 1099-NEC as an independent contractor, which is considered a self emplo

The $2,000 Charitable Deduction: Big Headline, Small Benefit? A key feature of the new tax bill is a $2,000 above the line charitable...

An obscure strategy for expats is for one spouse to claim the foreign income exclusion, and one does not, in order to claim the maximum...

Key Limitations of AI in Legal and Tax Research: What to watch out for with present day AI models. Here are my personal findings after...

The fear of the new 1% remittance tax being charged in error won't be relevant for most expats or foreign investors. It does not apply at...

Don't make this common mistake. If both spouses have individual non US bank accounts, they both need to file separate FBAR reports (If...

Why I Recommend BRK.B for UTMA Accounts: Avoid Pointless Tax Returns and Filing Costs. Opening a UTMA account for your child feels like a...

Missile Damage in Israel? U.S. Tax Relief May Apply While I sincerely hope no one reading this will ever need to act on this advice,...

Major win for my client, who through ridiculous IRS procedures and flawed tax law ended up with a $10k IRS bill.  This is a real...

Those that end up owing the IRS huge sums for capital gains when selling an investment apartment outside the US often revert to this...

Getting back to the US tax trap families in Israel often fall into when selling an apartment and quickly buying a new one: Out of all the...