U.s. Income Tax

[mdechgan]

I am not sure where to put this topic.

Any U.S. citizens planning on filing your income tax returns this April?

Where can I get some help and info on filing?

I don't think I make enough money to have to pay taxes but I think I have to file a return anyways.

How and where would I file? I don't have an W-2.

Anybody filing? Can anyone help?

[Jingthing]

If you are not to required to file because of low income if you were living in the US, you are not required to file as an expat (generally speaking). There may be other reasons to file. For example, I like to file using my Thai address to document that i am divorced from my old home state as I stopped filing any state returns. If you have a Thai bank account that has been over 10K USD for even one second last year, you must file a special form to the treasury department even if you are not required to file with the IRS. The penalty for not filing this treasury form is massive. Check irs.gov for the address to send your return if living overseas. You cannot efile if you are not using a US address on your form. Cheers.

[mdechgan]

I don't make enough to file. But was told and recommended to file anyway so in the future the IRS won't get on my back. Also I want to file because I might plan to return to the U.S. one day.

I do not make more than 8,950 USD in a year.

I don't know what form to file and how. 1040EZ?

Do I put my Thai address or U.S. address?

If I do not file will there be a problem in the future?

Should I just file to prove that I don't make enough money?

I have bank accounts for BofA and Wamu but no not 10K. More like $40!

Edited February 25, 2009 by mdechgan

[Jingthing]

I don't make enough to file. But was told and recommended to file anyway so in the future the IRS won't get on my back. Also I want to file because I might plan to return to the U.S. one day.

I do not make more than 8,950 USD in a year.

I don't know what form to file and how. 1040EZ?

Do I put my Thai address or U.S. address?

If I do not file will there be a problem in the future?

Should I just file to prove that I don't make enough money?

I have bank accounts for BofA and Wamu but no not 10K. More like $40!

I am not a tax expert but these are my opinions only.

You do not need to file if you are under the income threshold and I told you before a reason to file anyway, using a Thai address indicates you are not a resident of your old state.

If your old state has no state taxes, that reason would be gone.

If you are sure you will not move to your own home state after being an expat, that reason would be gone.

Using a foreign address still does not guarantee that your old state may go after you anyway if you don't file a state form!

If you intend to use a US address to file anyway, that reason would be gone.

If you do file, use whatever form you normally would use for your tax situation, all available to print from irs.gov.

You can use either a Thai or US address on your form, if you use a US address, you can efile online. Otherwise, you must mail it to the address at irs.gov for Americans living abroad.

The bank account reporting info I mentioned was for FOREIGN accounts such as a Thai bank account, not US accounts.

If you don't file and you didn't need to file, other than the state tax filing issue I mentioned, there technically is no reason whatsoever that the IRS would go after you when you return to the US unless there is a paper trail they have that you were indeed required to file.

There may be other reasons you are required to file because you haven't exactly divulged your entire financial profile. It is easy to figure out whether you are required to file or not, just go to irs.gov and find the text that asks the questions to determine whether you need to file. It is probably the most popular area of their site and shouldn't be hard to locate. I can say that living abroad does not excuse the need to file if you need to file anyway.

Edited February 25, 2009 by Jingthing

[Tywais]

I'm going to move this to the Business forum.

[mdechgan]

You do not need to file if you are under the income threshold and I told you before a reason to file anyway, using a Thai address indicates you are not a resident of your old state.

If your old state has no state taxes, that reason would be gone.

I lived in California and man do they have taxes. I think I better file with my Thai address to be sure.

If you are sure you will not move to your own home state after being an expat, that reason would be gone.

You never know what the future holds. But I might return and would like to keep that option open.

Using a foreign address still does not guarantee that your old state may go after you anyway if you don't file a state form!

If I file the 1040EZ isn't that enough? I didn't know there was a state form.

If you intend to use a US address to file anyway, that reason would be gone.

I'll use my Thai address.

If you do file, use whatever form you normally would use for your tax situation, all available to print from irs.gov.

I just usually give my 1040EZ and W2 to have some accountant do it for me for like a few dolllars.

But I don't know how to file without a W2. And do I just use whatever exchange rate? Do I need to prove my Thai income?

You can use either a Thai or US address on your form, if you use a US address, you can efile online. Otherwise, you must mail it to the address at irs.gov for Americans living abroad.

Mail is no problem. Is EMS ok or just regular?

The bank account reporting info I mentioned was for FOREIGN accounts such as a Thai bank account, not US accounts.

No I do not have that much in my Thai bank account as a balance. But it might come close if the money coming in and out is 350,000 baht total per year, but not as a balance.

If you don't file and you didn't need to file, other than the state tax filing issue I mentioned, there technically is no reason whatsoever that the IRS would go after you when you return to the US unless there is a paper trail they have that you were indeed required to file.

I have never made more than 10K USD while in Thailand. But I think I might want to file just to be safe and sure and do the right thing and be responsible.

There may be other reasons you are required to file because you haven't exactly divulged your entire financial profile. It is easy to figure out whether you are required to file or not, just go to irs.gov and find the text that asks the questions to determine whether you need to file. It is probably the most popular area of their site and shouldn't be hard to locate. I can say that living abroad does not excuse the need to file if you need to file anyway.

It says I have to file if I make more than $8950 a year which I don't. But I think I have to file for some reason.

[Jingthing]

California is known to be among the most aggressive states in going after expats (fairly or unfairly).

Since you make a Thai income, I seriously doubt the EZ form will meet your needs. I don't have a Thai income. You best ask some posters who do. The IRS does not want you to be double taxed so any taxes you pay to Thailand on your Thai income is taken into account. You will either have to learn to do your own filing or pay someone. There are some local US tax preparers in Thailand but it won't be cheap. One way to divorce yourself from California is to file a PARTIAL YEAR state tax return with California, the first part of the year claiming Cali residence and the remainder as an expat. They still may not believe you if you retain Cali bank accounts with a Cali address and hold a Cali driver's license. Om the other hand, you don't make much so maybe you wouldn't owe any Cali state tax anyway. Good luck. I have gone as far as I probably can with your situation.

Edited February 25, 2009 by Jingthing

[dotcom]

This is my opinion only.

US citizens have to file.

Yeah the Thai tax thing is a classic double dip. As Jing says no double taxztion; so whatever taxes you or your employer pay to the Thai authorities you can deduct $ for $ off any taxes you owe in US. That's over & abovbe the standard deduction.

As an expat you file to get the $80,000 foreign earned income exemption & add standard deduction to that.

Mostly you won't owe any money.

Be sure to report any dividends & interest you might earn on US accounts.

Jing is very right you have to report any account over $10,000 abroard in your name or joint names.

I always pay someone to do mine.

[IMA_FARANG]

I am not sure where to put this topic.

Any U.S. citizens planning on filing your income tax returns this April?

Where can I get some help and info on filing?

I don't think I make enough money to have to pay taxes but I think I have to file a return anyways.

How and where would I file? I don't have an W-2.

Anybody filing? Can anyone help?

I hope I can manage to get a least one reply in here before someone kicks me off again.

I'm trying to respond on Wifi on a shared computer and so far I've been knocked of twice.

Bottom line...All U.S. citizens are rquired to file a U.S income tax return annually.

All the information you need is available from the U.S. embessy in BKK, the American Citizens Services, I believe they call it now.

Overseas residnts now file through Houston, Texas.....do not file through your home state if you live overseas, it will delay your returns processing.

Overseas residents are eligable for the same deferments and excemptions that u.s. residents are. It may be entirely possible that your income is low enough to pay no taxes on the income. But you must file a U.S. income tax return to document that fact.

You may be able to defer taxes on any income earned solely from a foriegn source (i.e. Thailand).

On your federal income tax, if you actually reside in Thaialnd youmay be able to file as a overseas resident. If you do this you may be able to avoid paying state taxes by claiming you are a resident of Thaiand. But this is up to the state to allow or disallow.

Bottom line again...get good info, and tax forms from the U.S. embessy, Amereican Citizens Services. Read the IRS phamphlets to know how it is done legally. It might just save you money.

[mdechgan]

I pay my Thai income taxes and have forms to prove it.

I downloaded form 1040 but is says to attatch W2 which I do not have.

Is this the wrong form? On the internet is says to use schedule C but it is for businesses.

I am really lost here.

[Jingthing]

All U.S. citizens are rquired to file a U.S income tax return annually.

This is 100 percent FALSE. The IRS doesn't even want you to file if you are not required to file. It costs taxpayers money for them to process the millions of returns from people who are not required to file. I am not arguing about whether it may be a good idea to file anyway, but lets not propagate false statements here. What is true is that living abroad does not excuse your obligation to file IF you are required to file under the rules, but the rules do most certainly not say that all US citizens must file by any stretch of the imagination.

Edited February 25, 2009 by Jingthing

[ubonjoe]

Do You Need to File a Federal Income Tax Return?

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

This should provide you with lots of usefull information.

Publication 54 (2008), Tax Guide for U.S. Citizens and Resident Aliens Abroad

http://www.irs.gov/pub/irs-pdf/p54.pdf

[bangkokbanks]

The US Embassy has all the necessary forms. Just like the US Post Office, they have all the tax forms you need. If you live out of the country for more than 120 days (not sure on that, better check) that qualifies you as an expat, and means you can file late - I believe it is until June. At the embassy I remember seeing a tax guide for expats. You may also look at H&R Block on-line, they may also be able to help you. Many CPAs in the States would be also glad to take your business, just a google search away. I still use the same guy for the last 20 years, we do everything by email or DHL.

Cheers

TMB

Bangkok

[freddiefunk]

If you have a Thai bank account that has been over 10K USD for even one second last year, you must file a special form to the treasury department even if you are not required to file with the IRS.

Do you have more information about this? When is the deadline for filing this form? Thanx for the info.

[OriginalPoster]

... <duplucate post deleted> ...

Edited February 25, 2009 by OriginalPoster

[OriginalPoster]

I pay my Thai income taxes and have forms to prove it.

I downloaded form 1040 but is says to attatch W2 which I do not have.

Is this the wrong form? On the internet is says to use schedule C but it is for businesses.

I am really lost here.

I'm not completely certain if this is the "correct" thing to do when working for a foreign employer who doesn't issue a W2, but I submitted Form 4852 along with my 1040 as a means of reporting the income for which I did not recieve a W2. That form is entitled "Substitute for Form W2 Wage and Tax Statement..." I did it that way because that seemed to be what the TurboTax software wanted me to do.

Edited February 25, 2009 by OriginalPoster

[mdechgan]

I think I will have to file form 4852

So far to file my income tax duties to the U.S. government I have to file the following forms on my measly wage.

1. 1040

2. 2555ez

3. W7

4. 4852

Are there any other forms that I might need to fill?

I don't think I have to file but I will just to be safe. e.g. Homeland security won't think I'm a terrorist, etc.

Edited February 25, 2009 by mdechgan

[OriginalPoster]

I think I will have to file form 4852

So far to file my income tax duties to the U.S. government I have to file the following forms on my measly wage.

1. 1040

2. 2555ez

3. W7

4. 4852

Are there any other forms that I might need to fill?

I don't think I have to file but I will just to be safe. e.g. Homeland security won't think I'm a terrorist, etc.

You might be able to use form 1040EZ instead of 1040. The EZ form is a streamlined version of the form; generally considered to be less confusing for use in cases where your tax situation is not complex.

[mdechgan]

I think I will have to file form 4852

So far to file my income tax duties to the U.S. government I have to file the following forms on my measly wage.

1. 1040

2. 2555ez

3. W7

4. 4852

Are there any other forms that I might need to fill?

I don't think I have to file but I will just to be safe. e.g. Homeland security won't think I'm a terrorist, etc.

You might be able to use form 1040EZ instead of 1040. The EZ form is a streamlined version of the form; generally considered to be less confusing for use in cases where your tax situation is not complex.

I tried that but the form 2555ez doesn't match the lines of the 1040ez. It matches the original 1040. I could just file the 1040ez and not the 2555ez but not sure if I have to file the 2555ez.

[OriginalPoster]

I think I will have to file form 4852

So far to file my income tax duties to the U.S. government I have to file the following forms on my measly wage.

1. 1040

2. 2555ez

3. W7

4. 4852

Are there any other forms that I might need to fill?

I don't think I have to file but I will just to be safe. e.g. Homeland security won't think I'm a terrorist, etc.

You might be able to use form 1040EZ instead of 1040. The EZ form is a streamlined version of the form; generally considered to be less confusing for use in cases where your tax situation is not complex.

I tried that but the form 2555ez doesn't match the lines of the 1040ez. It matches the original 1040. I could just file the 1040ez and not the 2555ez but not sure if I have to file the 2555ez.

I think you're right, that to take the Foreign Earned Income exclusion you need to use the long form.

[Tywais]

All U.S. citizens are rquired to file a U.S income tax return annually.

This is 100 percent FALSE. T

Jingthing is correct, here is the info from the 1040i if in doubt.

[vagabond48]

If your return is that simple, you might want to do your return using TaxAct. You can do it either online or download their software (my preference). It is free if you do the federal return only. It also includes a free eFile.

Good luck

[DMasut]

YOU CAN GET FORMS FROM U.S. EMBASSY/IRS OFFICE

or go online to IRS.gov

U.S. Federal Income Tax Filing requirements are as follows:

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

Do You Need to File a Federal Income Tax Return?

For tax year 2007 only, many taxpayers who would not normally need to file a federal income tax return will need to file one in order to ensure that they receive an Economic Stimulus Payment (commonly referred to as "rebate"). If in 2007 you were not required to file based on the amount of your income but the combined amount of your earned income plus Social Security, Railroad Retirement benefits and certain benefits from the Department of Veterans Affairs is $3,000 or more, you should review the information on receiving an Economic Stimulus Payment.

Many people will file a 2008 Federal income tax return even though the income on the return was below the filing requirement. The questions below will help you determine if you need to file a Federal Income Tax return or if you need to stop your withholding so you will not have to file an unnecessary return in the future.

The Internal Revenue Service is providing this information as a part of our customer service and outreach efforts to Reduce Taxpayer Burden and Processing Costs. Changing your withholding and/or not filing Unnecessary Returns will save both you and the government time and money.

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

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?

Do one or more of the preceding situations apply to your filing requirements?

Yes | No

[Jingthing]

This may not be news to some of you, but it is news to me.

Since I have been filing for awhile from my Thai address, I received a large instruction book from the IRS with the forms also called Form and Instructions for Overseas Filers. An odd detail, it was mailed from a Thai P.O. Box in Bangkok, not directly from America.

[OriginalPoster]

This may not be news to some of you, but it is news to me.

Since I have been filing for awhile from my Thai address, I received a large instruction book from the IRS with the forms also called Form and Instructions for Overseas Filers. An odd detail, it was mailed from a Thai P.O. Box in Bangkok, not directly from America.

Noticed that type of thing too this year. I received mailings from the IRS this year that were sent from Singapore (which is where I'm living). The mailings had a return address of Detriot written on them but were bulk mailed from Singapore. Looks like they are sending correspondences off electonically to foreign destinations and then mailing out paper copies via local post.

[Kf6vci]

Well, try www.turbotax.com on the web, choosing the cheapest package. For e-filing, you need an address in the U.S.

This has the advantage of getting previous tax info used by the software in year 2.

It's a piece of cake - nothing to pay until you file. (No affiliation with Intuit, the software company). There might be similar other programs out there. but this one lets you do this in an internet cafe and continue whenever.

Had to print 133 pages and to be honest, there was some error I tired of trying to fix so I just went ahead and submitted the blasted returns!

Get it over with, it is not so bad.

Chris

P.S.: I owed taxes and had several options. Ask for a pay plan, pay it with a credit card or print out a voucher to mail in a check.

Edited March 9, 2009 by Kf6vci

[vagabond48]

P.S.: I owed taxes and had several options. Ask for a pay plan, pay it with a credit card or print out a voucher to mail in a check.

Or

you can try this free US Federal government EFTPS option to electronically schedule ACH payments of your estimated and return taxes. You must enroll, 1st so there may not be a lot of time for the 2008 return. Of course, you have to be comfortable with online money transactions. I have been doing this for several years. No more mailing checks and you pay your taxes when it is due. Oh, did I say it is free.

[skettios]

OP, use Form 1040 and 2555. Claim the Earned Foreign Income exclusion.

You might consider using TaxAct Online to fill in the paperwork.

When you are finished you won't owe anything, but at least you will have filed.

I was in the same predicament last year. I filed for 2007 and even got a stimulus check.

Now I just need to find the official Baht exchange rate for this year.

[longball53098]

P.S.: I owed taxes and had several options. Ask for a pay plan, pay it with a credit card or print out a voucher to mail in a check.

Or

you can try this free US Federal government EFTPS option to electronically schedule ACH payments of your estimated and return taxes. You must enroll, 1st so there may not be a lot of time for the 2008 return. Of course, you have to be comfortable with online money transactions. I have been doing this for several years. No more mailing checks and you pay your taxes when it is due. Oh, did I say it is free.

Yeah works good and "IT"S FREE" only one caution I can talk about.

I signed up last year for the EFTPS service as I owed the gov some cash. When I made the payment I apparently did or did not check a box indicating this payment was for the tax year 2007 so they applied it for 2008. I did not know I made a mistake until I started to get failure to pay and penalty notices. It took a few calls and waiting on the phone with the IRS to get my mistake fixed. But they did fix it promptly and no more warnings. The nice lady I spoke with told me this is a fairly common mistake that people make. So BEWARE if using the EFTPS the first time read all the screens to be sure to apply the payment to the correct tax year. I will be paying tax again this year for 2008 and I will use EFTPS and I will be more careful this time

[vagabond48]

Yeah works good and "IT"S FREE" only one caution I can talk about.

I signed up last year for the EFTPS service as I owed the gov some cash. When I made the payment I apparently did or did not check a box indicating this payment was for the tax year 2007 so they applied it for 2008. I did not know I made a mistake until I started to get failure to pay and penalty notices. It took a few calls and waiting on the phone with the IRS to get my mistake fixed. But they did fix it promptly and no more warnings. The nice lady I spoke with told me this is a fairly common mistake that people make. So BEWARE if using the EFTPS the first time read all the screens to be sure to apply the payment to the correct tax year. I will be paying tax again this year for 2008 and I will use EFTPS and I will be more careful this time

Good point especially when you are scheduling different tax payments for April 15 deadline, a payment for previous year return and estimated payments for the current year. It can be easy to get them confused. The good thing is, if upon review you find the mistake, that you can cancel your payment upto 2 days prior to the scheduled date and start again.

Edited March 12, 2009 by vagabond48