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Expert US tax preparation for Americans in France

If you dread filing your US expat taxes each year, you aren’t alone. But Greenback Expat Tax Services can prepare your taxes efficiently, accurately and at a fair, honest price.

Published: 3 March 2015 14:13 CET
Expert US tax preparation for Americans in France

Company name: Greenback Expat Tax Services

Name of Interviewee: David McKeegan, Co-Founder

Who is Greenback?

Greenback specializes in providing expert expat tax preparation and services for Americans living around the world. My wife, Carrie and I, started the company back in 2008. We were expats ourselves and couldn’t find an affordable, experienced expat tax provider so we decided to create the kind of company we were looking for.  We’ve grown exponentially since our inception and now serve clients in over 140 countries—it’s an exciting time for our company!

Where is Greenback located?

Greenback actually operates with a unique business structure. Our entire team works remotely, without a physical office. Like us, many of our team members are expats themselves!

We wanted to remain location independent since we really enjoy the expat lifestyle, but operating virtually also allows us to find the most experienced accountant and management professionals, no matter where the live. 

What are Greenback’s greatest strengths?

We certainly believe the expertise of our accountant team is the core of this company. Providing accurate returns is critical and we are meticulous in our hiring process. Customer service is another strength. Many clients return to us year after year for our tax expertise, but also because we are genuinely nice people to work with.  That is the ultimate compliment.

Why would a US expat choose to work with an expat tax company instead of preparing their taxes on their own?

Expats can absolutely file on their own if they are comfortable doing so! But the US expat tax filing requirements are complex and ever-changing, which makes it really difficult for expats to accurately file their taxes year-to-year. Understanding the deductions and exclusions that are available to offset US taxes can also be a challenge so it’s helpful to work with someone who knows the ins and outs of expat tax filing.

What is one thing Americans in France really need to know?

There is a special tax regime for expatriates working temporarily in France (so this would be a non-resident). Foreign individuals sent to France or hired directly from abroad to take on a job in France may benefit from certain tax advantages:

  • An exemption for a maximum period of 5 years for all expat-related allowances paid in addition to your salary (housing, cost of living, tax difference, moving expenses, etc.
  • An exemption for the portion of salary relating to any activity performed outside France; and
  • A partial exemption (50%) for income from foreign financial investment (interest, dividend capital gains, etc.).
  • A general exemption from France’s high wealth tax is available to expats during this 5-year period. There are a few more details that determine your eligibility for this regime, but that is a general overview of this tax benefit.

Do you file foreign bank account reports for your clients?

Yes! We prepare and file both FBAR (Foreign Bank Account Report) and FATCA (Foreign Account Tax Compliance Act) forms. We file the FBAR form (FinCEN 114) electronically with the Department of the Treasury by June 30th each year, while FATCA Form 8938 is filed along with your US Federal Tax Return. (Remember that if you file for an extension on your US return, you get an extension on FATCA, but NOT FBAR—that is always due June 30th.)

How does the tax preparation process work?

We wanted to make it as simple as possible, so everything is done online. Documents are uploaded to a secure online folder and the accountant prepares a draft return in about a week. In most cases, our accountants can even e-file on behalf of their clients.

What if someone hasn’t filed their US taxes since moving abroad?

This situation is really common, as many expats never knew they needed to file. We can help by filing back taxes, as well as prepare the necessary forms and tax returns if someone chooses to file under one of the IRS amnesty programs for delinquent filers, such as the Streamlined Filing Procedures.

Greenback Expat Tax Services

This text was sponsored by Greenback Expat Tax Services.

TAXES

Should I include my grown-up child in my French tax declaration?

Young adult children are often still financially dependent on their parents, and under some situations you can continue to claim them on your French tax declaration.

Published: 13 May 2024 13:16 CEST
Should I include my grown-up child in my French tax declaration?

As soon as a child reaches the age of majority – 18 in France – they are, in principle, subject to personal income tax and should file their own tax returns, even if they do not receive any income. 

But at this age many children still live in the family home, or are studying at university and are likely still financially dependent on their parents.

The good news is that, if a child is still dependent on their parents’ financial support, they can be included in the tax household, which leads to a number of tax benefits, depending on your situation.

This includes adult children away at university, who – for tax purposes – may still be considered to be dependent and ‘living at home’, even if they are away studying at the other end of the country.

If you are not sure whether you need to add an adult child to your tax return, officials at your local tax office will be able to help you.

READ ALSO Tax benefits of having children in France

When can you include your adult child on your French tax return?

A child over the 18 may be attached to their parents’ 2023 tax return (declarable in 2024) in the following cases:

  • your child was under 21 on January 1st, 2023;
  • your child was under 25 years of age on January 1st, 2023, and in full-time education either on January 1st, 2023 or December 31st, 2023.
  • Disabled children over the age of majority can be included on their parents’ tax declaration regardless of age.

If your adult child lives with you and is attached to your tax household, you can deduct a lump sum of €3,968 from your income on your declaration for 2023 earnings. According to the tax authorities, this amounts to the cost of board and lodging.

READ ALSO Explained: How to fill out the French tax declaration

“When the child’s accommodation covers only a fraction of the year, this sum must be reduced in proportion to the number of months concerned (…) Even if it is a lump sum, the amount deducted must be declared by the beneficiary”, the tax authorities’ website states.

Be aware, however, in situations where the parents are taxed separately (for example, if they have divorced), an adult child who is still financially dependent can only be attached to one or other tax household, not both.

How do I add an adult child to my tax declaration?

Since the introduction of the prélèvement à la source (withholding tax), you can add your child to your tax household online in your personal space on the impots.gouv.fr website by clicking on Actualiser suite à une hausse ou une baisse de revenus in the Gestion mon prélèvement à la source section.

READ ALSO: How to file your 2023 French income tax declaration

You also need to report it on the annual tax return, in the box provided for this purpose, section D on page 2.

If you prefer, you can also visit your nearest tax office, where officials will help you.

What you need to declare

If your adult child is attached to your tax household, parents must declare on their tax return any income that child received for the entire year (that’s income from 2023 on tax returns filed in Spring 2024).

READ ALSO EXPLAINED: How to get a ‘numéro fiscal’ and create a French tax account

The following incomes are exempt from income tax:

  • internship allowances and apprentices’ salaries, provided they do not exceed the annual minimum wage (€20,815 for income earned in 2023). Any amount earned over this is taxable;
  • Salaries of students aged 25 or under working student jobs, up to an annual limit of three times the monthly SMIC (€5,204 for income earned in 2023). Any amount earned over this is taxable.

What about student grants or scholarships – should we declare those?

That depends on the type of grant or scholarship. 

Specific research scholarships, for example, should be declared, but bourses allowing children from lower-income families to attend further education establishments should not. 

READ ALSO 10 tax breaks you could benefit from in France

If you are unsure whether you should declare a grant or scholarship, you can find out more according to your specific situations here, or visit your local tax office.

Financial aid for children on low income

Even if your child lives on their own and files their own returns, parents who provide monthly financial assistance to adult children up to the age of 25 can declare the sums paid up to a limit of €6,368 per year. This aid is fully deductible, but must be declared on your adult child’s tax return.

“You must keep all receipts for expenses, as they may be requested by tax authorities. If the parents are taxed separately, each parent can deduct expenses up to this limit,” the tax office website says.

Try it out

You can simulate calculations for your 2024 tax return, with and without any adult children added, using the tax office simulator.

READ ALSO How much tax can you expect to pay in France in 2024?

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