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Marcoregano · Joined: 19 May 2003 Posts: 872 Location: Hong Kong

From what I can gather the rules are quite clear - as a US citizen you have to file your tax form wherever you live and no matter how much you earn. And now they also want to find out how much you have in your bank account.

spiral78 · Joined: 05 Apr 2004 Posts: 11534 Location: On a Short Leash

Prof Gringo says: For anybody that thinks giving up their US citizenship is a good idea, you better think twice. History shows things can change very fast. You never know when you might need to get out of a sticky situation. Remember that the Embassy is only open for citizens, even expats

Other countries have embassies too Shocked

Giving up US citizenship doesn't mean one has no embassy protection.

(my motivation wouldn't be to avoid paying taxes, by the way, as I haven't owed anything for years and am unlikely to)

munchkin · Joined: 27 May 2009 Posts: 23 Location: USA

"From what I can gather the rules are quite clear - as a US citizen you have to file your tax form wherever you live and no matter how much you earn. And now they also want to find out how much you have in your bank account"

I have to file my US taxes due to other monies coming in and NEVER had I had to provide my bank account information UNLESS I wanted a refund to go electronically.

If you make 7k or less as a single you do not need to file...bear in mind that the deductions...as a filer would give you monies back ..and it would be good to file even though not required due to getting the stimulus back. This is, of course, if you are not working overseas and need to file the foreign income form which is not taxable.

I have not even had to provide an overseas bank account.

MrMrLuckyKhan · Posted: Sun May 31, 2009 1:46 pm Post subject:

MrMrLuckyKhan · Posted: Sun May 31, 2009 2:09 pm Post subject:

johnslat · Posted: Sun May 31, 2009 2:50 pm Post subject:

If you're single and make under $8,950 a year, you don't HAVE TO file . . .
but it's a LOT better to do so:

"Definitely file, even if it's all zeros. If you need to file one day in the future, the sudden appearance of a return when there was none in prior years will set off red flags at the IRS."

ttp://ask.metafilter.com/16589/Filing-US-taxes-from-out-of-country-with-no-income-to-claim

"Even if you don�t have to file, here are six reasons why you may want to file:

Federal Income Tax Withheld. If you are not required to file, you should file to get money back if Federal Income Tax was withheld from your pay, if you made estimated tax payments, or had a prior year overpayment applied to this year's tax.
Recovery Rebate Credit. If you did not qualify or did not receive the maximum amount for the 2008 Economic Stimulus Payment, you may be entitled to a Recovery Rebate Credit when you file your 2008 tax return.
Earned Income Tax Credit. You may qualify for the Earned Income Tax Credit, or EITC, if you worked, but did not earn a lot of money. EITC is a refundable tax credit meaning you could qualify for a tax refund.
Additional Child Tax Credit. This credit may be available to you if you have at least one qualifying child and you did not get the full amount of the Child Tax Credit.
First time Homebuyer Credit. If you bought a main home after April 8, 2008, and before July 1, 2009 and did not own a main home during the prior 3 years, you may be able to take this refundable credit.
Health Coverage Tax Credit. Certain individuals, who are receiving certain Trade Adjustment Assistance, Alternative Trade Adjustment Assistance, or pension benefit payments from the Pension Benefit Guaranty Corporation, may be eligible for a Health Coverage Tax Credit when you file your 2008 tax return."

http://www.irs.gov/newsroom/article/0,,id=105097,00.html

"To determine if you need to file a Federal Income Tax return for 2008 answer the following questions:

Occasionally, individuals have one-time or infrequent financial transactions that may require them to file a Federal Income Tax return. Do any of the following examples apply to you?

Did you have Federal taxes withheld from your pension and wages for this tax year and wish to get a refund back?
Are you entitled to the Earned Income Tax Credit or did you receive Advance Earned Income Credit for this tax year?
Were you self-employed with earnings of more than $400.00?
Did you sell your home?
Will you owe any special tax on a qualified retirement plan (including an individual retirement account (IRA) or medical savings account (MSA)? You may owe tax if you:
Received an early distribution from a qualified plan
Made excess contributions to your IRA or MSA
Were born before July 1, 1937, and you did not take the minimum required distribution from your qualified retirement plan.
Received a distribution in the excess of $160,000 from a qualified retirement plan.
Will you owe social security and Medicare tax on tips you did not report to your employer?
Will you owe uncollected social security and Medicare or Railroad retirement (RRTA) tax on tips you reported to your employer?
Will you be subject to Alternative Minimum Tax (AMT)? (The tax law gives special treatment to some kinds of income and allows special deductions and credit for some kinds of expenses.)
Will you owe recapture tax?
Are you a church employee with income in wages of $108.28 or more from a church or qualified church-controlled organization that is exempt from employer social security or Medicare taxes?"

ttp://www.irs.gov/individuals/article/0,,id=96623,00.html

Do You Need to File a Federal Income Tax Return?

1. Can anyone claim you as a dependent?

Yes | No

2. Do You Need to File a Federal Income Tax Return?

Single, NOT Over the Age of 65 or Blind

NOTE: Unearned income includes taxable interest, dividends, etc. Earned income includes wages, tips, self-employment, taxable scholarship, fellowship grants, etc..

Was your unearned income over $900?

Yes | No

3. Do You Need to File a Federal Income Tax Return?

Single, NOT Over the Age of 65 or Blind
Unearned Income NOT Over $900

NOTE: Unearned income includes taxable interest, dividends, etc. Earned income includes wages, tips, self-employment, taxable scholarship, fellowship grants, etc..

Is your gross income less than $8,950?

Yes | No

If you answered 1. No; 2. No; 3. No

You need to file a Federal Income Tax return. Even if you do not have to file a return, you should file one to get a refund of any Federal Income Tax withheld."

http://www.irs.gov/individuals/article/0,,id=96627,00.html

Regards,
John

naturegirl321 · Joined: 04 May 2003 Posts: 9041 Location: home sweet home

Marcoregano · Joined: 19 May 2003 Posts: 872 Location: Hong Kong

When is the deadline for filing this year's return? I think it's June 15 for overseas citizens - am I right?

Whatever, it's a pain in the neck! Soooooo glad I don't have to do this for the UK.

MrMrLuckyKhan · Posted: Mon Jun 01, 2009 3:34 am Post subject:

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

Let me see if I got this right.

The US Treasury (not the IRS) wants to know if you have a combined savings over US$10,000 somewhere overseas. The purported reason being that you might be a money-launderer or other sort of criminal.

The IRS, on the other hand, actually takes into account whatever you make domestically or abroad and taxes you on it. If it's over a certain amount abroad, you don't get taxed, but you have to file, and most EFL teachers don't make anywhere near this amount, so they have nothing to worry about in that regard. However, the IRS does know how much your U.S. bank account is, because you have to file the interest income statement with your taxes.

What are people really upset about? The IRS taxes you on what you have in the US. The Treasury does not. The IRS knows what you have domestically, but not abroad (other than what you make, not save).

If you are married to a Japanese (for those of us in Japan, anyway), you can put the excess of $10,000 in a spouse-only account and never have it touched or known by the Treasury.

As I see it, if you have a company position, you could argue. If you are single and have no where to "hide" your earnings, you might argue, too, but the whole point is that the Treasury, not the IRS, is doing this because of some bad apples (the crooks, mostly), right?

Here in Japan, the bank interest is a mere 0.01-0.02%, so it's foolish to keep the majority of your savings here, when you could make 100x to 200x more in a bank account in the U.S. anyway.

laconic · Posted: Mon Jun 01, 2009 7:56 am Post subject:

Ah, the IRS is part (a big part) of the Tres. Dept.

http://www.irs.gov/

Glenski · Joined: 15 Jan 2003 Posts: 12844 Location: Hokkaido, JAPAN

laconic · Posted: Mon Jun 01, 2009 8:41 am Post subject:

Prof.Gringo · Posted: Mon Jun 01, 2009 6:26 pm Post subject:

People are being really paranoid.

The IRS/Tres. Dept. are not on a witch hunt for overseas TEFL'ers that are making McDonalds wages.

If you didn't make over 80k last year, and you were living outside the US most of the year, you don't have to pay anything.

Also, the IRS doesn't freak out if you don't file.

BTW you have 3 years to file a return and get a refund (if any).

Marcoregano · Joined: 19 May 2003 Posts: 872 Location: Hong Kong

My wife hasn't filed for 10 years (a combination of plain laziness and exasperation with the forms). However, her salary has never gone beyond the overseas allowance.

Anyways, now she's decided it's time to get back on track. Any advice? Has anyone else missed a few years or more?

According to advice from the Overseas Tax Service she might as well just file for the current year (ie. get her forms in by June 15) with an explanatory note - and see what the IRS says re. the missing years.