Tax season 2023 is finally upon us!!
An important thing to keep in mind:
For returns of the 2022 tax year, the COVID stimulus payments and other reliefs are no longer available.
This may cause some people to be very surprised when they see a tax bill. This is especially true for freelancers abroad, working on 1099s as independent contractors.
Normally, there will be self employment tax to pay. While those with children can have the child tax credit cancel out much of the tax, there is always something left over, unless there is also wage income on the return. This is how it normally works out.
While those living in the US may be eligible for the earned income credit (a payment of up to $6935) for low income households, those living abroad most of the year aren't eligible.
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