Consular Services
Taxes
U.S. Federal Taxes (IRS)
U.S. citizens must report their worldwide income on their federal income tax returns. Living or earning income outside the United States does not relieve a U.S. citizen of the responsibility for filing tax returns. However, U.S. citizens living and/or working abroad may be entitled to various deductions, exclusions, and credits. ACS provides a list of unvetted U.S. tax practitioners in Hungary and a limited supply of federal tax forms. For more information on general U.S. tax issues, please consult the IRS web site. For basic tax information for Americans overseas, please visit the U.S. Citizens and Resident Aliens Abroad page of the Internal Revenue Service.
The closest IRS office that has jurisdiction over Americans in Hungary is located in Frankfurt, Germany. Their contact information is:
U.S. Consular General Frankfurt
Internal Revenue Service
Giessener Str. 30
60435 Frankfurt (Main), Germany
Tel.: (49) 69-7535-3834; Fax: (49) 69-7535-3803
E-mails: *irsfrankfurtmailbox@irs.gov or IRS.Frankfurt@irs.gov
Web site: http://germany.usembassy.gov/acs/irs.html
The 2008 IRS exchange rate for Hungary is $1.00 = HUF 171.8984
U.S. State Tax Information
The American Citizen Services does not have state tax forms. For your convenience, we list the states' tax web sites below.
Alabama | Alaska | Arizona | Arkansas | California | Colorado | Connecticut | Delaware | District of Columbia | Florida | Georgia | Hawaii | Idaho | Illinois | Indiana | Iowa | Kansas | Kentucky | Louisiana | Maine | Maryland | Massachusetts | Michigan | Minnesota | Mississippi | Missouri | Montana | Nebraska | Nevada | New Hampshire | New Jersey | New Mexico | New York | North Carolina | North Dakota | Ohio | Oklahoma | Oregon | Pennsylvania | Puerto Rico | Rhode Island | South Carolina | South Dakota | Tennessee | Texas | Utah | Vermont | Virginia | Washington | West Virginia | Wisconsin | Wyoming
Hungarian Tax Information
The Hungarian tax authorities have advised us that U.S. citizens may call the following telephone number for Hungarian tax information in English, Tel: 461-3300, 322-0220; Fax: 322-9824. For a more comprehensive interpretation of Hungarian tax law, it is advisable to consult a Hungarian tax expert.
As of May 1, 2004, Americans working for a Hungarian employer are generally subject to full Hungarian social security. In contrast, Americans (who have neither dual Hungarian citizenship, nor a Hungarian permanent residence permit, i.e., "letelepedési engedély") who are working in Hungary for a non-Hungarian employer are generally exempt from Hungarian social security. As the U.S. and Hungary have not yet entered into a social security totalization agreement, certain individuals may be required to pay into both country's social security systems on the same earnings. For further information, please consult a tax expert in Hungary.
Tax Accountants and Consultants
Please note: We provide this name for your convenience only. The Embassy assumes no responsibility for his professional ability or integrity.
Alatorre and Phraner Tax Services - U.S. tax preparation services in Hungarian & English. Lloyd W. Phraner is a tax advisor who provides year round tax services in Hungary. He can be reached by dialing 36-21-252-3369 after 4 PM Hungarian time or by e-mail: lloyd@aptaxes.com. Our website with useful information can be found at http://www.aptaxes.com/. Lloyd Phraner is available for meetings in Hungary from May thru June.
Other listings may also be found in The Budapest Sun, a weekly English-language newspaper.
New regulations under Internal Revenue Code Section 7216, Disclosure or Use of Tax Information by Preparers of Returns, became effective January 1, 2009. These regulations limit tax return preparers' use and disclosure of information obtained during the return preparation process to activities directly related to the preparation of the return. The regulations, along with supplemental Revenue Procedure 2008-35 http://www.irs.gov/irb/2008-29_IRB/ar13.html contain the updated rules and requirements relating to disclosure and use of tax return information. These regulations apply to paid and volunteer preparers and the administrative staff that supports them. Failure to comply may result in criminal or civil penalties. See the IRC 7216 http://www.irs.gov/efile/article/0,,id=188390,00.html information page on irs.gov for more details. Frequently Asked Questions about this topic are available at http://www.irs.gov/efile/article/0,,id=188398,00.html on irs.gov.