Personal Tax Filing For Us Citizens Residing In Thailand

[guudboy]

Hi Guys,

- I have moved to Bangkok in July of 2009 from the US. I am currently unemployed and have been unemployed since 2008. My personal income is limited to interest on my savings account. In the past, I used tax preparation software (TuboTax, HR Block, etc.) to do my own tax, because my situation was very straight forward (only W2 income and some US bank interest). I plan to live in Bangkok and am currently getting along with my job search process.

- Now that I am spending most of my time in Bangkok, I was wondering if there's any change to my tax filing process or requirements. In addition to the regular 1040, is there some additional forms or calculation that I have to complete. My question include both for 2009 tax year (which i didn't have any wage income to declare, just US bank interest) and for the future tax year when I do land a job and earn wage income in Thailand.

I intend to research more and look further into these tax preparation software to find out about the process, but thought that I might as well ask for some guidance on here, in the likelihood that some folks are already in the same category as I am.

Any guidance/suggestion you can share is appreciated.

Thanks guys.

[Jingthing]

If your interest income is under the minimum amount needed to file, you don't need to file federal tax forms at all.

You want to file for the tax year you left the US and file a partial state tax form to document that you are no longer a resident of your old US state. This could benefit you later if your income increases.

If you have bank accounts in Thailand that by combining them exceeded 10K USD in any given year, you are required to file an annual report to the treasury department. This is separate from the IRS but very important do. Potential massive penalties for non-compliance.

[TerryLH]

If you make enough to have to file, use 1040 and 2555EZ.

[el jefe]

As mentioned above you need to file Form 2555 (or 2555EZ) to report your foreign earned income and possibly exclude it from tax. The main requirement to use Form 2555EZ rather than the regular form 2555 is if your foreign earned income is under $91,000. Instructions can be found on the IRS website here:

http://www.irs.gov/pub/irs-pdf/i2555.pdf

[Jingthing]

I wasn't referring to foreign income at all. I was referring to the foreign BANK ACCOUNT reporting requirement to the treasury department (only needed if even for one day the sum of all your foreign accounts exceeded 10K USD).

[TerryLH]

I believe the reply was for guudboy.

He stated he would be looking for work here.

[khunjamespittman]

You are required to file income tax for income derived from the US. That includes interest on any accounts, social security, wages, pension, income from property just as if you still resided in the us.

Since you are intending to stay for a long time in Thailand I assume you have a substantial sum on desposit here so you will also have to file this account with the Treasury Department. You can find this form with the other Income tax forms online or at the US Consulate.

If you are outside the US on April 15, you are granted an automatic extension to file until August without penalty.

Be sure to write on the top of your 1040 when you file that you were outside the US on April 15. If you don't the IRS could impose a late filing fee.

Regards,

[tripplejjj]

You should at least go through the motion of filing, plugging in the numbers, just to see if you get any refund. (I believe the IRS and Intuit websites have free filing for 1040EZ.)

Any how, if your income does not meet the minimum required by the IRS to file an income tax, then you should file one "for the record" if you foresee seeking any benefit from such filing such as having a proof of income.

For example:

If you paid taxes on your monthly income, but you don't make enough in a year to require filing an income tax, then you might get a tax return on the amount that you paid in taxes. The only way to find out exactly how much, if any, is for you to go through the motion and plugging in the numbers.

Edited March 22, 2010 by tripplejjj

[craigt3365]

I wasn't referring to foreign income at all. I was referring to the foreign BANK ACCOUNT reporting requirement to the treasury department (only needed if even for one day the sum of all your foreign accounts exceeded 10K USD).

Wow...that's a new one for me. I am assuming you are referring to the US Treasury? Guess I will have to research this.

I am in the same position as the OP. No income here, only interest/dividend income in the US.

I have to be back in the US in May, so will take advantage of the automatic extension and do the form in May. I have used TurboTax for the past 20 years or so. Next year's return will be filed from here. Are there any issues with this? I read somewhere that there were some issues, but can't remember for the life of me.

I changed my state to Nevada, so no need to do a state return...

Found the info here for the foreign bank account reporting requirements:

http://www.irs.gov/businesses/small/articl...=148849,00.html

Edited March 23, 2010 by craigt3365

[Rama]

You are required to file an income tax form if your income is more than 9,500 a year, even if you don't owe any taxes. If less, you are not required. If you don't file and your income is more they can penalize you for not filing. A recent IRS bulletin said that the IRS now estimates that there is something like 60 Billion dollars in uncollected taxes from American expats (all countries). I also heard that the IRS is going to open an office at the embassy in Bangkok and go after expats more vigoriously.

You are also now required to file an IRS form if you own more than 10% in a foreign company.

There is also the same Treasury form required for reporting foriegn bank account holdings.

[ericthai]

If you are working and paying taxes here then anything under I believe at this time it is still $83,000 USD you don't have to pay taxes in the US.

However there is a very good possibility this will change in the near future this is one of the things on Obama's list to do.

If you want a tax guy PM me i have a good in the USA I use, cheap too.

[up-country_sinclair]

You are required to file an income tax form if your income is more than 9,500 a year, even if you don't owe any taxes. If less, you are not required. If you don't file and your income is more they can penalize you for not filing. A recent IRS bulletin said that the IRS now estimates that there is something like 60 Billion dollars in uncollected taxes from American expats (all countries). I also heard that the IRS is going to open an office at the embassy in Bangkok and go after expats more vigoriously

I know a couple of teachers who haven't filed in nearly a decade. Eventually it's going to catch up with them, but their response is that they don't make enough in dollars to be taxed, so any fines would be minimal.

I guess that might be true, but it still seems a bit risky.

Edited March 23, 2010 by up-country_sinclair

[lopburi3]

1. http://www.fincen.gov/forms/f9022-1_fbar.pdf

Above is the current form to report bank account over 10k and it was changed in 2008 so only this form is allowed.

2. For tax I have used TaxAct for the last ten years without a problem - but I do not have earned income so perhaps not a good test for some. It does allow foreign address which some seem to have a problem with.

[TravelerEastWest]

........You want to file for the tax year you left the US and file a partial state tax form to document that you are no longer a resident of your old US state. This could benefit you later if your income increases.....

A great point about state taxation.

Even if you in theory moved to a state with no taxation states can be challenging if you still have family or property etc in the old state. Something to consider.

[guudboy]

Thanks everyone for sharing. This is probably the most friendly and informative site I came across since I moved here. Bravo.

[simpathy]

If you are working and paying taxes here then anything under I believe at this time it is still $83,000 USD you don't have to pay taxes in the US.

However there is a very good possibility this will change in the near future this is one of the things on Obama's list to do.

If you want a tax guy PM me i have a good in the USA I use, cheap too.

this TAX GUY needs to learn economics. if he is so good he shouild charge more, NOTHING WRONG WITH PROFITTING BECAUSE YOU R GOOD AT WHAT YOU DO!

LET ME BE KLEAR, EXPATS SHOULD PAY THEIR FULL TAXES, NO MATTER WHERE THEY RESIDE!

[BEENTHEREDONETHAT]

Wonder if anyone in or out of the IRS has read and understands the tax code? All 67,000 pages. I seriously doubt it.

[metisdead]

If you are working and paying taxes here then anything under I believe at this time it is still $83,000 USD you don't have to pay taxes in the US.

However there is a very good possibility this will change in the near future this is one of the things on Obama's list to do.

If you want a tax guy PM me i have a good in the USA I use, cheap too.

this TAX GUY needs to learn economics. if he is so good he shouild charge more, NOTHING WRONG WITH PROFITTING BECAUSE YOU R GOOD AT WHAT YOU DO!

LET ME BE KLEAR, EXPATS SHOULD PAY THEIR FULL TAXES, NO MATTER WHERE THEY RESIDE!

And you need to learn to quit posting in capital letters! Read up on netiquette.

[hawthorne]

Paying taxes and living out of the US really bites. The US is so far behind most other countries that give them an exemption from paying. We do not even benefit from our taxes. Atleast we do not pay SS and the taxes are a bit reduced. Agree though, report honestly becuase the government is going after the expat extremely hard. They are putting pressure on so many countries to comply to their rules.

[farangene]

FYI

I was at the US consulate in BKK about 10 days ago and overheard an employees telling someone who inquired that the consulate had not received any tax forms from the IRS.

IF you need tax forms, go online was the recommendation.

[simpathy]

Paying taxes and living out of the US really bites. The US is so far behind most other countries that give them an exemption from paying. We do not even benefit from our taxes. Atleast we do not pay SS and the taxes are a bit reduced. Agree though, report honestly becuase the government is going after the expat extremely hard. They are putting pressure on so many countries to comply to their rules.

you should pay full usa taxes no matter where you reside! freedom costs money!

[jfchandler]

To the OP, it's never simple...

Whether you're living in the U.S. or Thailand, (and now you say Thailand), your U.S. banks will report anything over $10 per year in interest to the U.S. via a 1099 form.

Here's the link to an IRS document on whether people need to file a return or not...

Even if you don't owe taxes, you might be entitled to a refund on any withholding you may have had back in the U.S., and/or be entitled to one of the economic stimulus rebates.

Also, if you've cut all your economic ties in the U.S. and only have bank deposits there but don't own property there or earn income there, you may be entitled to avoid filing any state tax return for 09 and future years -- depending on the policies of the state where you previously resided.

All of that will change if/when you become employed in Thailand, and legally, are required to file a federal return and report that income -- even if only to take advantage of the earned income exclusion for income earned abroad.

[guudboy]

Hi guys, Tax day came and went.

I ended up using HR Block to e-file both, fed and state. There are too many conditions for both, "need-to-file" and "no-need-to-file" for partial-year residents in my state. I thought I would be better off attempting to file, as full year resident, at least for their record that I did not intend evasion.

Next tax year, once I do have income other than bank interest, I'll look into this again and find other software that allows non-resident e-filing.

Majority of my assets are in the U.S. still, so nothing to report to the Treasury. Big downside is that I need periodically withdrawal then convert to Thai Baht, and Thai Baht is ODDLY strong for months now.

Thank you everyone who contributed here. I appreciate it, hope you guys got some big refunds!!