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Immigrants in the USA

5 Financial Tips for Immigrants in the USA

Moving to the USA is a big achievement for many, but to make a living in this land of opportunity is no easy feat either. In order to create a strong financial foothold in the USA, there are a few things that immigrants must keep in mind. This article lists five financial tips that you must know in case you have just relocated to the USA.

Tip #1: Read and learn
Loads of information is available these days when you wish to learn the ropes of achieving financial security in the USA. From web articles to books and even courses on financial skills, there is a lot that you can take help from to improve your knowledge about financial management when you have just started to live in the USA. You can even browse some special websites that provide relevant financial information to the newcomers in the country. Whether you wish to buy a home or want to know about selecting a retirement plan, a good website can offer all this information and much more.

Tip #2: Never ignore the importance of savings
There is no denying that every individual needs to have their focus on saving their hard-earned money, but this becomes all the more important when you relocate to a foreign land, especially the USA where the cost of living is significantly higher than most of the other countries. As much as you can, avoid taking debts as you never know what the future may bring. Living with some good amount of funds in reserve is a wise decision for every US immigrant.

Tip #3: Be careful while transferring funds overseas
When hiring international money transfer services, make sure that you rely on a reputable provider. This will provide you the peace of mind you deserve by transferring your money safely and securely.  Also, be aware of the exchange rate. It makes sense to check with a number of money transfer service providers to get the best exchange rate. Moreover, when you fix your expense budget every month, don’t forget to include the costs of money transfer.

Tip #4: Pay your taxes on time
You should never ever delay your tax filing process. Obtain your Individual Tax Identification Number (ITIN) and know about the IRS forms that you need to fill. Visit the official website of the Internal Revenue Service and you will find all the information you need to file your annual federal tax returns. Besides this, you also need to know about the deductions that you are entitled to. This will help you save several dollars when you pay taxes as a US immigrant.  

Tip #5: Find a reliable finance professional
The United States tax code could be really complex for new immigrants. So, find a reliable and experienced finance professional for proper financial consultation. Such a professional will be able to guide you about various aspects that will have an impact on your financial condition in the USA. From filing taxes to finding the right investment options for you, a good finance professional can help you with it all.

While the above tips are important to be financially secure in the USA, you need to have a good understanding about different frauds to get the much-needed protection against them, especially against those frauds that involve moving services. Thus, be well-informed to be financially safe in this country of dreams.

Important Taxation Tips for Expats in the USA

Expat tax filing is a complex process. Millions of people live in the USA as expats. If you are one of those and dread the mere thought of filing taxes, then don’t worry, you are not alone. There are many who believe that tax filing should be simpler, but the world of taxes is complicated and it doesn’t work the way we want. So, how can you reduce the stress of taxes?

To get you started, Perfect Tax and Finance has collated seven brilliant taxation tips that you must know as you prepare for tax filing this season.

Register with the IRS – First things first, you need to obtain an SSN (a social security number) for yourself, your spouse and for all your dependent family members, and get registered with the IRS. If you couldn’t get an SSN, then applying for a TIN (taxpayer identification number) is important. In case you are an employer with at least one employee, or in case you pay the excise tax, then you will also need an EIN (employer identification number).

Keep your paperwork organized – All your financial documents must be well organized if you wish to file your taxes without any difficulty. From your bank statements to credit card statements, mortgage interest statements and investment related documents – everything should be kept in a folder and must be arranged date wise for easy retrieval. You might be surprised to know this but there are many people who take documentation quite seriously and keep their tax-related paperwork in a single place for years.

Understand the law of the land – This may be a no-brainer, but there are many who fail to adhere to the taxation rules for expats as stated by the US government. By just sparing a few minutes and reading the taxation procedure in the USA, you can save yourself from big troubles afterward.

Know your deductions – Who doesn’t want to save a few thousand dollars from their hard-earned money? Well, we all want to do that. So, when it comes to taxation, don’t forget to keep a check on the deductions that are available to you. You can save a lot of money with genuine tax deductions from your income.

Don’t forget the state and local tax – When it comes to paying taxes in the US, don’t forget that your tax may be due on more than just federal government level. You have to keep in mind the tax for the individual state that you live in, and at times, you may even have to pay local tax. Figure out the amounts for all these taxes to get a clear picture of your tax filing situation.

Always keep a track of the important dates – In addition to keeping a track of the important financial documents, you must also keep a track of the tax filing deadlines. This will help you avoid penalties and paying higher interest on your delayed tax payments.

Don’t skip the filing process – No matter how hard you may try to remember the important tax filing dates, there are chances that you may forget them. As a matter of fact, every year, there are many people who forget to file their US tax return, but it is never too late to pay what is due. Simply being late doesn’t give you the privilege to ignore the taxes completely. It is always better to be a late taxpayer rather than being a defaulter on purpose. So, as soon as you realize that you are behind your tax filing procedure, work and file your taxes. You will be glad you did that.

If this is something that you'd be interested in, please get in touch with our taxation experts. Drop in an inquiry here and we'll give you a call within 24 hours. 

Financial planning

Financial Planning Tips For The New Parents To Be

Whether you are a newlywed couple or parents-to-be, financial planning at a very early age has been mandatory, thanks to the current lifestyle. In addition to creating a personal financial plan, building and preserving a family wealth fund to utilize for emergencies and family goals requires a high-level of commitment.

At Perfect Tax and Finance, we provide personal financial planning advice - coupled with one-on-one guidance to develop a comprehensive that suits your personal and family needs. We’ve compiled a few tips for new parents-to-be to create a suitable financial plan that helps manage risk and emergencies, promote long-term savings and ensures the growth and longevity of your wealth.

Tip #1 Create a Distributed Savings Plan

It is a common human tendency to break down the savings plan whenever there is a need. As much as your personal savings should be helpful at times of emergency, it is also essential to set a limit as to how much of your escrow savings can you use up at such times.

If you are using a major part of your savings to procure luxuries, then you are on the wrong path. To overcome this tendency, make it a habit to distribute your savings towards different categories - child’s education, vacation plan, home purchase, four-wheeler purchase and others. When you do this, you know which specific part of your savings can be redeemed when needed.

Tip #2 Save first and Spend the rest

Parenting begins the moment you become pregnant so it is essential to start saving for the child’s future from the beginning with a well-defined plan in mind. Pregnancy and Childbirth, in addition to a lot of happiness, bring in a bunch of additional expenses such as medical charges, lifestyle expenses and much more. To be prepared for these expenses is the first step to saving for your little one.

Tip #3 Create an Emergency Fund

It is highly recommended that you set up a contingency fund keeping in mind the potential financial risks in case of any unavoidable death or disability in the family. Plans such as Health, Home, Life or Term Insurance and other long-term insurance payments that support your family during emergencies can be a great asset during times of crisis.

Tip #4 Choose your Priorities

As much as you wish to create an amazing life for your child, it is also essential to set your limits and choose your priorities. The biggest investment you can make for your child’s future is their education, hence it is essential to make it your first priority for savings. Create a child’s education fund and start investing since Day 1.

If you are unsure where to begin, Perfect Tax and Finance helps accurately estimate the amount of money you'll need, analyze your assets, review estimated shortfalls and consider general alternatives and strategies to help address these potential shortfalls; in order to develop an optimal savings plan given your financial situation and risk tolerance.

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