Understanding Tax Returns in the United States

In the United States, a tax return is the form you file with the IRS each year to report your income and calculate how much tax you owe — or how much the government owes you as a refund. Unlike in Russia, where employers typically handle most tax matters, the American system places much more responsibility on individuals.

Who Needs to File a Tax Return?

  • You are a US citizen or resident alien
  • Your income exceeds the filing threshold (for 2026: $14,600 for single filers under 65)
  • You are self-employed and earned $400 or more

Important: Even if you are not required to file, you should file if federal tax was withheld from your paycheck — this is how you get that money back as a refund.

Common Tax Challenges for Russian-Speaking Immigrants

Understanding Your Tax Residency Status

For tax purposes, you are a resident alien if you hold a green card at any time during the year, or if you meet the Substantial Presence Test. Resident aliens file just like US citizens, reporting worldwide income. Non-resident aliens only report US-source income and use different forms.

Reporting Foreign Income and Assets

If you are a US tax resident, you must report worldwide income — including interest from Russian bank accounts, dividends from foreign stocks, rental income from property abroad, and income from freelance work for foreign companies.

⚠️ FBAR and FATCA: If you have foreign financial accounts with a combined value over $10,000 at any point during the year, you must file an FBAR. Penalties for non-filing can reach $10,000 per violation per year. See our complete FBAR guide.

Self-Employment and Small Business Income

Self-employment income is taxed differently than W-2 wages. You are responsible for paying self-employment tax (about 15.3% on net earnings), making quarterly estimated payments, keeping detailed records of business expenses, and understanding deductions. Good news: you can deduct mileage, home office, equipment, supplies, and professional development.

Common Benefits Russian-Speaking Clients Often Miss

  • Earned Income Tax Credit (EITC) — for low to moderate income workers
  • Child Tax Credit — up to $2,000 per qualifying child
  • Education credits — American Opportunity or Lifetime Learning Credit
  • Foreign tax credit — to avoid double taxation on income earned abroad
  • Retirement savings contributions credit (Saver's Credit)

Why You Need a Russian-Speaking Tax Professional

  • Clear communication in your native language — tax concepts are complex; explaining them in a second language adds an extra layer of difficulty.
  • Understanding your unique situation — we know the Russian tax system works differently, you might have financial ties to Russia, and there are specific challenges immigrants face.
  • Avoiding costly mistakes — mistakes on tax returns can lead to penalties, interest, or audits.
  • Planning for the future — not just filing last year's return, but planning to reduce next year's taxes.

Tax Return Preparation: What to Expect

Initial Consultation

We discuss your immigration status, all sources of income, major life events, foreign bank accounts, and any questions you have — in Russian. This conversation typically takes 30–45 minutes.

Document Gathering

We provide a detailed list in Russian of all documents needed: W-2 forms, 1099 forms, foreign income documentation, mortgage interest statements, and personal information for everyone on the return.

Review and E-Filing

Before filing, we review everything with you in detail — in Russian — explaining your refund or amount owed, where major numbers come from, and what to expect. Once you approve, we file electronically.

Special Considerations for Recent Immigrants

First Year in the United States

Your first year may involve split-year status — treated as a non-resident for part of the year and a resident for the other part. Setting up your Form W-4 correctly when you start work helps you avoid a large surprise tax bill in April.

Understanding US Tax Treaties

The United States has a tax treaty with Russia designed to prevent double taxation. However, treaty benefits typically only apply to non-residents. Once you become a US resident for tax purposes, most treaty benefits no longer apply.

Ready to get started? Contact us for a free consultation in Russian. We are here to help you navigate the American tax system with confidence.

Welfo — Serving the Russian-speaking community in Sacramento & Roseville
(279) 999-2788 (WhatsApp, Telegram, SMS)  |  info@welfo.us