Tax Glossary

Foreign Bank Account Report - a form US persons must file to report foreign financial accounts exceeding $10,000.

Foreign Account Tax Compliance Act - US law requiring reporting of foreign assets and foreign financial institutions to report on US account holders.

IRS form used to report specified foreign financial assets under FATCA requirements.

A US tax credit that reduces your US tax liability by the amount of foreign taxes paid on foreign-source income.

Allows qualifying US expats to exclude up to $126,500 (2024) of foreign earned income from US taxation.

IRS form employers use to report wages paid and taxes withheld from employees.

IRS forms used to report various types of non-employment income including freelance work, dividends, and interest.

Social Security and Medicare taxes for individuals who work for themselves, currently 15.3% of net earnings.

Registered Retirement Savings Plan - a Canadian tax-advantaged retirement savings account.

Tax-Free Savings Account - a Canadian savings account where investment growth and withdrawals are tax-free.

Agreement between countries to prevent double taxation and define tax treatment of cross-border income.

A federally-licensed tax practitioner authorized to represent taxpayers before the IRS.

IRS test requiring 330 full days of physical presence in a foreign country during a 12-month period to qualify for the Foreign Earned Income Exclusion.

IRS test requiring uninterrupted residence in a foreign country for an entire tax year to qualify for the Foreign Earned Income Exclusion.

IRS program allowing eligible taxpayers to catch up on delinquent tax returns and FBAR filings without penalties.

IRS form used to claim the Foreign Earned Income Exclusion and/or the Foreign Housing Exclusion or Deduction.

IRS form used to calculate and claim the Foreign Tax Credit for foreign taxes paid or accrued.

IRS form used to disclose treaty-based return positions that override US tax law.

IRS form for reporting profit or loss from a sole proprietorship or single-member LLC business.

IRS form used to calculate self-employment tax (Social Security and Medicare) on net self-employment income.

Passive Foreign Investment Company - a foreign corporation with primarily passive income, subject to punitive US tax treatment.

A foreign corporation with more than 50% ownership by US shareholders, subject to special tax rules requiring current income inclusion.

The general area of your main place of business or work, regardless of where you maintain your family home.

Bilateral agreement between countries to coordinate Social Security coverage and prevent double taxation of social security.

Quarterly tax payments made by individuals who don't have sufficient tax withholding from wages.

A person who is both a resident alien and nonresident alien in the same tax year, typically during arrival or departure year.

Tax treaty provisions that determine residence for individuals who would otherwise be tax residents of both countries.

The standard US individual income tax return form used by citizens and residents to report annual income.

US income tax return for nonresident aliens with income from US sources.

Simplified US tax return for taxpayers age 65 and older with larger print and a standard deduction chart.

Amended US individual income tax return used to correct errors on a previously filed Form 1040.

Simplified version of Form 2555 for claiming the Foreign Earned Income Exclusion without the housing exclusion.

IRS form for reporting ownership of Passive Foreign Investment Companies (PFICs) and making certain elections.

IRS form for US shareholders of Controlled Foreign Corporations to report financial information and income inclusions.

IRS form for reporting transactions with foreign trusts and receipt of large foreign gifts or inheritances.

Annual information return filed by foreign trusts with at least one US owner to report trust income and assets.

IRS form for US persons with interests in foreign partnerships to report financial information and income.

The Canadian federal agency responsible for administering tax laws, collecting taxes, and delivering benefit programs.

The standard Canadian personal income tax return filed annually by individuals with the Canada Revenue Agency.

Canadian employer-issued slip reporting employment income and deductions, similar to the US W-2.

Canadian tax slip reporting investment income including interest, dividends, and royalties.

Canada's mandatory contributory social insurance program providing retirement, disability, and survivor benefits.

Canadian federal program providing temporary income support to unemployed workers, funded by employee and employer premiums.

Canadian tax obligations for non-residents receiving income from Canadian sources, typically collected through withholding.

Canadian withholding tax on passive income paid to non-residents, generally at a 25% rate reducible by tax treaties.

Canadian form for reporting foreign property with a total cost over CAD $100,000, the Canadian equivalent of FBAR.

A category of income from CFCs that US shareholders must include in their taxable income, targeting foreign earnings exceeding a routine return on assets.

Certain categories of CFC income that US shareholders must include in their taxable income currently, regardless of whether it's distributed.

An election allowing US shareholders of PFICs to be taxed currently on their share of the PFIC's earnings, avoiding punitive default rules.

An election allowing US shareholders to recognize annual gains and losses on marketable PFIC stock, avoiding the default PFIC tax regime.