Guide to: Income Taxes
Relocating to the United States is exciting, but it also comes with responsibilities—one of the most important being filing your income taxes. For Brazilians who are newcomers or long-term residents, navigating the U.S. tax system can feel confusing, especially since it differs greatly from Brazil’s Receita Federal. This guide will walk you through the essentials of understanding and filing U.S. taxes as a Brazilian, covering everything from tax residency rules to key forms, deadlines, and strategies to avoid costly mistakes.
Why Taxes Matter for Brazilians in the U.S.
Whether you’ve arrived in Florida for work, studies, or family, once you start earning income in the U.S., you’ll most likely have tax obligations. Filing correctly ensures you stay compliant, avoid penalties, and in some cases, even get money back through refunds. Additionally, consistent tax filing helps build a financial track record, which supports applications for permanent residency, credit history, and even future business loans.
Step 1: Understanding Tax Residency Rules
Your tax responsibilities depend on whether you’re considered a resident alien or nonresident alien for tax purposes.
Resident alien: You pass the green card test (permanent resident) or the substantial presence test (usually living in the U.S. for at least 183 days in a given year or over a three-year weighted period). Resident aliens file taxes similarly to U.S. citizens, reporting worldwide income.
Nonresident alien: You don’t meet residency requirements. You usually only pay U.S. taxes on income earned inside the U.S.
Tip for Brazilians: Many who come on work visas, study visas (F-1, J-1), or temporary assignments may start as nonresidents but become residents for tax purposes after a certain number of days. Tracking your days in the U.S. is crucial.
Step 2: Getting the Right Identification (SSN or ITIN)
To file taxes, you’ll need a U.S. tax identification number:
SSN (Social Security Number): If you work legally in the U.S., your employer should help you apply for this.
ITIN (Individual Taxpayer Identification Number): If you’re not eligible for an SSN (e.g., dependents, certain visa holders), you’ll need to apply for an ITIN using IRS Form W-7.
Without an SSN or ITIN, you cannot file taxes, claim tax credits, or receive refunds.
Step 3: Key Forms for Brazilians to Know
The U.S. tax system involves several important forms:
Form 1040: Standard income tax return for residents.
Form 1040-NR: For nonresidents.
Form W-2: Provided by employers to show your annual wages and tax withholdings.
Form 1099: For freelancers, contractors, or investment income.
Form 8938 / FBAR (FinCEN 114): Required if you hold foreign bank accounts above certain thresholds (very common for Brazilians who keep money in Brazil).
Brazil-U.S. tax treaty: The two countries do not have a comprehensive tax treaty, but the U.S. may allow tax credits for taxes paid in Brazil to avoid double taxation. Always check your situation with a tax professional.
Step 4: Deadlines and Extensions
The main filing deadline is April 15 (or the next business day if it falls on a weekend/holiday).
Automatic extensions: You can file Form 4868 to extend the deadline to October 15.
Foreign residents: If you live outside the U.S., you may automatically get a two-month extension (to June 15), but interest still accrues on any tax owed.
Mark these dates early—missing deadlines can lead to penalties.
Step 5: Common Tax Credits and Deductions
As a Brazilian taxpayer in the U.S., you may be eligible for valuable credits:
Child Tax Credit (CTC): If you have children with SSNs.
American Opportunity Credit (AOC): For students or parents paying tuition.
Earned Income Tax Credit (EITC): Available only to certain residents with SSNs, not ITIN filers.
Foreign Tax Credit: If you paid taxes in Brazil, you may offset part of that on your U.S. return.
Tip: If you send money back to Brazil to support family, unfortunately, this does not qualify as a U.S. deduction.
Step 6: State Taxes vs Federal Taxes
Unlike Brazil’s centralized system, the U.S. has two levels:
Federal income taxes: Filed with the IRS.
State income taxes: Depend on where you live. For example, Florida—home to many Brazilians—has no state income tax, which simplifies your filing. If you later move to another state (like New York or California), expect an additional layer of filing.
Step 7: Avoiding Double Taxation
One of the biggest concerns for Brazilians is paying taxes in both Brazil and the U.S.
Brazil taxes worldwide income if you’re still considered a tax resident there.
The U.S. also taxes worldwide income if you’re a resident for tax purposes.
To avoid double taxation:
Inform Receita Federal if you’ve officially moved abroad and file a Declaração de Saída Definitiva do País (Declaration of Definitive Exit).
Use the U.S. foreign tax credit if you still pay some taxes in Brazil.
Step 8: Choosing How to File
You have several options for filing:
DIY software – Programs like TurboTax, H&R Block, or TaxAct are beginner-friendly and guide you step by step.
IRS Free File – If your income is below a certain threshold.
Tax professionals – Especially recommended for Brazilians with dual income (U.S. + Brazil), business ownership, or foreign bank accounts. See our linked resources for a list of tax preparers in the area.
Step 9: Common Mistakes to Avoid
Forgetting to report income from Brazil (bank interest, rental property, dividends).
Not filing FBAR if you hold over $10,000 USD combined in Brazilian accounts.
Missing deadlines for extensions.
Using the wrong form (1040 vs 1040-NR).
Assuming you don’t need to file because taxes were already withheld from your paycheck.
Final Thoughts
Filing U.S. taxes as a Brazilian may seem intimidating at first, but with the right preparation, you can avoid mistakes, maximize credits, and stay compliant. The key is to determine your residency status, gather the right documents, and understand your obligations both in the U.S. and Brazil. If your situation is complex, hiring a bilingual tax professional with experience in cross-border taxation is often worth the investment.
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