Filing for 2020 U.S. Taxes in Peru: What You Need to Know

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Are you filing for U.S. taxes while living in Peru? The 2020 deadline is April 15, 2021. Here’s what you need to know from a tax advisor.

First thing to know is that there are different rules that apply to those who live in the U.S. and those that live abroad. Also, you need to distinguish between paying your taxes and filing your tax returns. Let’s get started.

Tax dates to know if living abroad:

File returns:

You must file your tax returns or apply for an extension by April 15, but those living abroad have an automatic extension to file until June 15. This extension is different than the “applied for” extension through October 15.

If you applied for an extension by April 15, you must file your tax returns by October 15.

Penalties for failure to timely file (including extensions), generally are 5.0% of net tax amount due per month, subject to a cap.

Pay Taxes: You need to pay your Federal and State taxes by April 15.

If you do not pay your taxes (or more) by that date you will likely owe interest and penalties. These can be substantial (for instance, penalties for failure to timely pay, generally are 0.5% of net tax amount due per month, subject to a cap). It can also affect the amount that your employer will withhold from your wages in future years.

You need to pay your taxes even if you do not file your tax returns by April 15. But wait, how do I know how much tax I owe if I haven’t done my return yet?

It does sound odd that you must pay your taxes before you’ve done the final tax calculation. Nonetheless, it is true. The IRS and the State expect you to either (1) have your return done by April 15 or (2) estimate your taxes due and pay your taxes based on your estimate.

If you estimate, you should estimate you owe the higher amount of tax. Otherwise, if it ends up that you underpaid your taxes, you will likely incur interest and penalties. In our opinion, you are always better off overpaying your taxes (thus avoiding interest and penalties) and file for a refund rather than underpaying and owing interest and penalties.

I hope you found this helpful. 

For more information on this and other topics:

For more information on any tax concerns please log into our webpage: www.lagattatax.com or  contact us at [email protected] or call us at  (51) 949-968-555. All consultations are free and confidential. 

Visit us at: www.lagattatax.com for a free consultation with a tax expert.  All consultations are free and confidential.

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Cover photo: Philip Taylor/Flickr

Stephanie LaGatta

Stephanie LaGatta was born in Lima, Peru and grew up in different places, between the U.S., Peru, and Argentina. She graduated from the University of Central Florida with a Bachelor’s of Science in Accounting and later she pursued her Master’s of Science in Accounting with an emphasis in Taxation. After moving back to her hometown, she decided to pursue a career in what she knew best and serve the American Community in doing so. So, she started LaGatta And Company Tax Advisors, where she and her partners provide many types of Tax counsel for U.S. citizens.