Job Discussion Forums

[dynow]

I worked for a few weeks in January in the states before i came here. i have a savings account collecting some interest, sold some stock, dumped my 401K.......anyone got any advice regarding taking care of my taxes for 2008? i won't be in the US during tax season so i will have to establish power of attorney with someone to file taxes for me, but i am wondering if there is anyone out there that has been through this and has any advice.

[scot47]

I thought USAnians outside the USofA filed taxes themselves. Why use a Power of Attorney ?

[dynow]

i HAVE to file some of it myself, but with power of attorney, i can have someone do most of the paperwork for me. the paperwork will still need to be sent to poland for me to sign, you can't avoid that even with power of attorney.

this is what i was told before i skated the US, but i'm looking for some people with experience in this. i will be staying in poland for a while, and i want to arrange my taxes to be as easy as possible for 2009, 2010, etc.

[misteradventure]

I'm not a lawyer, accountant or paid provider of tax advice. You should only rely on advice from a competent professional, if such people exist.

I suggest you read Title 26 United States Code to find out what form you should file. The Devil is in the definitions. If you determine that you are not a Federal Judge or a Member of Congress or the Executive Branch, taxes become easy. You can download the appropriate forms from the IRS.gov website.

Most people born in one of the 50 States are American Nationals and should be filing 1040NR with an information copy of W-8BEN.

If you are born in the 'Federal Zone' (Washington DC, Puerto Rico, Guam, any of the other possessions or territories, or are a Naturalized Citizen), then you should be filing Form 1040 and a W-9 with a Form 2555.

Like I typed above, I am not an expert and this should not be considered advice and good luck finding a genuine expert.

[john_n_carolina]

online , or go to the US Embassy in Poland ?? try H&R Block ??

[misteradventure]

It never ceases to amaze me that people who can look in a book to determine the proper conjugation of an irregular verb cannot make the transition to looking things up learning how to handle their personal finances.

This is how I would handle it:

Fill out the 1040NR. Make a copy for my own files. Send the completed form to IRS via Registered mail. Staple the receipt froom the Registered Mail to the 1040NR form copy. Keep in a safe place forever.

That's it. For my sister, I had to explain to a tax attorney (yes, a professional!) that people working outside the United States (that is, the Federal Zone) are exempt from taxation on earned income for up to $80,000 USD. The response was like a light bulb going on in the brain. "Oh yeah... forgot about that."

It is important to read everything carefully. The IRS flat out tells you that your are liable (that is, responsible) for knowing and obeying the law. It is right there on their website. They tell you that the information may not be correct. In their publications, they tell you that the information may not be correct. When you call them up, they may not give you the correct information. In other words, they can lie to you and, since they posted numerous warnings, you are at fault for believing them. It is a license for them to lie.

The only reliable online source outside government websites is:

http://caselaw.lp.findlaw.com/casecode/uscodes/26/toc.html


H&R BLOCK likewise is a dangerous route. If you think that you can become a tax expert in 6 weeks, please explain to me why all of those lawyers take a two-year Master's course (this is AFTER four years of law school) in Taxation.

You are on your own. LIke I said, I'm not a lawyer, accountant, financial planner, medical doctor or tax professional. This should not be considered legal, financial or medical advice. If you need one, good luck finding one who knows anything.

Good luck, and may the Force be with you.

You learn all kinds of interesting things doing proofreading for a law firm.

[john_n_carolina]

....but, in this case isn't he talking about stocks sold, CD savings, etc....he doesn't have the papers in Poland??

if it's just salary / income earned, the 1040NR works?? but, if you have other stuff it might get a little more complicated..?? don't know, for 6 years i didn't do mine either, because i knew the $60,000 rule or whatever....

[FuzzX]

Theres actually no (LEGAL) law stating that you need to pay your income tax in the US. It blows me away how people who live in the US don't even know how their own tax systems work.

[misteradventure]

The requirement to file is currently being challenged by the courts. There is a select group which is required to file and pay, but they are a fraction of a percent of the total US population.

If you are the kind of person who likes to maintain the status quo, the information I provided earlier should maintain you in good stead.

If you choose to go a different path, that is your decision.

[john_n_carolina]

...i've known about the "no-file" tax law in the US....but, from what my lawyer friends etc tell me, "if you don't file / pay your taxes"...you're screwing yourself over when it's time to collect your Social Security ?? whether Earth will exist until then, is another question.

[misteradventure]

Please stay on topic. The Internal Revenue Service is a private organization, not a governmental entity like Social Security.

The Social Security program is entirely voluntary, was intended as a social 'safety net' (hence the use of the word "security") and not as a retirement program. You must 'apply' for a number'. You must beg for one, it is not issued automatically. You can compare it to a Driving License- if you don't have one (and think you need one to operte a motor vehicle), you have to ask for one from the appropriate governmental entity.

It is much like living/working illegally as an ESL teacher. You can get by without all of those governmental programs.

Notice that one must 'apply for benefits' (like any welfare program) and every year the US Congress must authorize funding for the program out of the funds available to Congress, it is not paid for out of money that you put into it (like a legitimate retirement program). If it were not run by the Government, it would be illegal as it meets all of the classic requirements of a 'Pyramid Scheme', also known as a 'Ponzi Scheme', inspired by the cons ran by Charles Ponzi in Florida nearly a hundred years ago. You can learn about these at www.ftc.gov

You can opt out of Social Security by writing and telling them you want to quit and, depending on the procedures they have at the time, they will eventually send you a four page letter or so that you can use for telling your employer and anyone else that you do not qualify for a social security number.

To qualify for benefits, you must meet the requirements published at www.ssa.gov which is generally ten years of quarterly payments (i.e. 40 quarters.)