Job Discussion Forums

[lunita]

Hello All,

This is my first time writing in to the forums. The issue I have been dealing with while living outside the US is in regards to declaring my taxes. I have lived, studied & worked in Australia for nearly a year on a student work visa and will be heading to Thailand to teach English in March 2006 (going on a tourist visa currently).

As U.S. citizens what do we need to be telling the IRS for our jobs outside of the United States? I have browsed the IRS website and have not found any answers for US citizens working overseas.

Any insight or links that would give me some factual information would be greatly appreciated!! Currently, I need to find out about working as an international student in Australia because I'll have to begin doing those taxes before I leave.

[jr1965]

Lunita,

Try going here on the IRS website: http://www.irs.gov/localcontacts/index.html. Select the state you're from and you'll get a list of local numbers to call.

There is also more information about this on the IRS site below (have you seen this?). I'm facing a similar situation this year, so will need to review this info soon myself.

http://www.irs.gov/businesses/small/international/article/0,,id=96796,00.html


My understanding is that if you work outside the US, you're supposed to file a certain form that shows how much you made. If you make under a certain amount, you don't have to pay taxes. This was the case when I worked in Asia a few years ago. Things may have changed, though, and if you have a look at the link just above, I think the info is there. If not, call your local IRS office and ask someone for assistance.


Good luck!

[Gordon]

I think you can earn 80 grand before having to pay taxes. You should be under that amount as a student work visa.

[tedkarma]

There is so much misinformation or half-true statements made on line about US taxes - do your research.

Here's the basics - as I understand them from living overseas since 1989 and filing via my CPA.

Yes, there is a $80,000+ "exemption" - in other words the FIRST $80,000 of your income is exempt from taxes - earn more than that and you begin to pay taxes. BUT you must file for the exemption when you file your taxes. So, you MUST file. If you don't file, you don't get the exemption - then all your income is eligible to be taxed.

So - the basic rules are: you must file, AND, when you file you should file for the exemption. Only then will you find that you owe no taxes.

There are some rules about how long you must be out of the country to be ELIGIBLE for the exemption. Better to sort that out with a CPA.

Also, as you are living/working overseas, there are a series of extensions that you can request to very legally delay your filing for several months.

If you are going to remain overseas for any period of time it useful to have a CPA do your taxes at least once to make sure you get it right - then you at least have a basic idea of what, when and how.

[naturegirl321]

You need to file the 1040 and the 2555ez

[lunita]

Thanks everyone for your responses!! I'll post any new info that I find in the next few months.

Smiles, Lunita

[lafayette]

As an American living in Canada I know that you should file your taxes even if you did not make $80k U.S. Having worked at the U. S. Embassy for a few years, I have seen so many Americans that believe once they are expatriates they no longer have to file taxes. Wrong! The tax credits are such that I would recommend you seek out a CPA who has experience handling the paperwork. It is worth the money.