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Topic: BUNAC...worked for six months, now time for taxes....  (Read 1535 times)

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BUNAC...worked for six months, now time for taxes....
« on: November 30, 2005, 05:03:30 AM »
Not sure if I should put this here or in the student area....

I worked in England for six months this year (w/BUNAC), and I know I'm thinking very far ahead, but how exactly do I file that on my USA income tax this year? Or do I even need to since I've already been taxed once by the UK? I can't figure out what I've done with my BUNAC guide book that has info about it.
"Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover." ~Mark Twain


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Re: BUNAC...worked for six months, now time for taxes....
« Reply #1 on: November 30, 2005, 09:41:47 AM »
1)  File form 1040, not 1040EZ.
2)  Claim all your income (pretax) you earned worldwide - including UK.  Convert to dollars at the average exchange rate for the year, which will be available at www.oanda.com and on the federal reserve website http://www.federalreserve.gov/releases/g5a/ the first week or so of January.
3)  Attach Form 1116 to take a tax credit for all your UK taxes paid.
4)  DO NOT use Form 2555.  You weren't in the UK long enough to use that form.

Easy peasy!  All forms are available online at www.irs.gov and may be easier with a tax programme or online tax preparation product such as Intuit's TurboTax.

What are you going to do when you come back to England?  What's your major?  Will you need an internship sponsor...?
Good luck!
Liz Z i t z o w, EA
British American Tax


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Re: BUNAC...worked for six months, now time for taxes....
« Reply #2 on: November 30, 2005, 05:02:49 PM »
Thanks! That helped a lot. I might have more questions once I actually sit down and do my taxes.

I am coming over a missionary intern. The church I'm based at will provide shelter, food, and transportation cost (not including the flight). Any other expense I have, I need to find people to sponsor me. I think some of my relatives here and my employer are planning on giving me a bit of money to live on when I go over. (for toiletries, to go towards my flight, etc.) I can stay for 1-5 years (see if I like it the first year, then sign on for more years). So I'm really hoping these people are going to be dependable! (I have to come back to the states  in-between years and go through the visa process again)

I'm getting my two year Associate of Arts right now (will have it in July) and after the internship, I'm going to come back to the states and get my 4-yr in Social Work. (probably..I'm still torn between that and teaching)
"Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover." ~Mark Twain


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Re: BUNAC...worked for six months, now time for taxes....
« Reply #3 on: November 30, 2005, 05:40:11 PM »
Social Workers are one of the "must have" jobs that get looked favourably upon by the Home Office when considering work permits.  You should be able to move here permanently (if indeed that is your goal).  Best of luck to you!
Liz Z i t z o w, EA
British American Tax


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Re: BUNAC...worked for six months, now time for taxes....
« Reply #4 on: November 30, 2005, 05:45:18 PM »
Thanks! Part of the internship thing I'm doing is "social concern" so hopefully that will help me get in the door if I decide I want to move over forever. But I still have a long way to go with school before i can even consider that!

Do you know if teachers are in demand? Or do they only want people who have had their training in the UK?
"Twenty years from now you will be more disappointed by the things that you didn't do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover." ~Mark Twain


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