Filing your American taxes while being a Dutch tax resident. You might wonder why. You might wonder when. Maybe even wonder how. That last one we can answer easily.
Filing your American taxes while being a Dutch tax resident
You are a Dutch tax resident when your central point of life is in the Netherlands. We connect to that the obligation to register with city hall. The moment you are registered with city hall, the Dutch tax office is aware of you being a Dutch tax resident.
Most people prefer not to choose to be a Dutch tax resident. We can understand that. Hence the tax treaties do not give you a choice. Either you are, based on your central point of life, or you are not.
Are you double taxed as a US national/green card holder and Dutch tax resident?
Now I enter the territories of BNC Tax where they have the expert knowledge of US taxes. The answer is from a Dutch perspective: a little bit.
Yes you do need to contribute to the Dutch system the moment you are a Dutch tax resident. Or you are a non-resident tax payer working in the Netherlands. Even if you do not work in the Netherlands, but you own a property in the Netherlands. You pay Dutch taxes. We are good at that.
The US is out performing us, as the US connects the US nationality with paying US taxes. Brilliant idea from a US government standpoint. Less brilliant if you happen to be a US national and a Dutch tax resident. Our tax rates are considerably higher than the US rates, and then you still need to pay in the US? Probably yes.
Are there limits to your taxation in the US while being a Dutch tax resident?
We believe there are limitations. It all depends on your global income, Dutch income and things like that. To be honest, we have no idea. This is the expertise of BNC tax.
Is there a point in filing the Dutch tax return if we also pay US tax?
That we do know and the answer is YES. Before you are able to file your US tax return, you need to have filed your Dutch tax return. The Dutch tax return is the basis on which the US tax return can be processed.
As we are aware of this fact and that you have a mid April deadline, we offer an early service. Early in the sense that the software that enables us to process your Dutch return is ready early February. Hence early February we can process your Dutch tax return. The moment you have provided us all we need, maximum of three working days it takes to turn around the income tax return.
Feel free to connect with us. Our 2024 rate is EUR 430 incl VAT including tax partner for a regular income tax return. An entrepreneurs income tax return is charged at EUR 590 excluding VAT including tax partner. Please connect with us via info@orangetax.nl
IamExpat webinar filing your American taxes
February 27 at 19.00 hours BNC tax and Tax is Exciting organize via the IamExpat platform a webinar about the US Dutch tax combination. Feel free to join us. We do appreciate that very much !
