Us Expat Tax Services

[Tywais]

Earning money even outside america means you have to pay tax to the IRS?

Not if it's under $80,000.

[Thaiquila]

Earning money even outside america means you have to pay tax to the IRS?

Not if it's under $80,000.

Again, that actual figure can change every year. But you still have to file if you earn alot overseas. And money earned from US based sources (interest, dividends, etc) is still US taxable even if you are a permanent resident of a foreign country.

[migrant]

Yes, that is true, the actual amount changes every year and also based on filing status.

However, I think the spirit of the question is that if your income is all unearned income like interest and dividends, and that income is under the annual threshold, do you need to file?

If your income is under the yearly threshold, you do not need to file, but be careful of

documents you receive that are informational.

You asked before about a rollover, and this is an example of when it may be best to file even if you do not have to.

If you do a trustee-to-trustee rollover you will probably not get a 1099, and if under the threshhold, do not need to file.

If you do get a 1099, even if only a rollover, it is best to file, and show the nontaxable rollover. The 1099's that the gov't gets are being tied to the individual better than ever, and efforts are growing to continue improving this area.

Easy to file, no taxes, but helps keep the IRS from red flagging your return.

If you sell stocks, and your 1099B puts you over the filing requirements, even if the gain/loss doesn't, it's best to file.

If you have some taxes withheld, best to file to get the money back.

By filing the return you start the statute of limitations running, and instead of being on the defensive (if contacted by the feds) you have filed and beaten them to the punch.

[lanny]

Can some one tell me if My income is from only interest and about 7000 US do i need to file or is that under the Minimum ??

The actual amount changes every year as the amounts are adjusted for inflation. However, you do not have to file if your income, regardless of source, is less than the total of your exemptions (and your spouses, if married filing jointly) and standard deduction for your filing status. However, if you had taxes withheld, you might want to file to get them refunded but you will not get in trouble if you do not.

Yes, that is true, the actual amount changes every year and also based on filing status.

However, I think the spirit of the question is that if your income is all unearned income like interest and dividends, and that income is under the annual threshold, do you need to file?

Well, the source of your income does not affect the requirement for filing. The minimum income levels for each filing status are based on total income from all sources. So, whether your income is all from investments, all from salaries and wages, or from some combination, it is the total amount that determines your filing requirement.