Hello
Guest

Sponsored Links


Topic: Which forms do I need?  (Read 1495 times)

0 Members and 1 Guest are viewing this topic.

  • *
  • Posts: 52

  • Liked: 0
  • Joined: Mar 2005
  • Location: London
Which forms do I need?
« on: March 18, 2006, 10:49:20 AM »

Sorry to go "back to basics" on you with this one!  :D

I'm going to prepare my own U.S. tax return for 2005, because it should be relatively simple, since:

1. I worked the entire year in the UK; I have no U.S. income other than a few bucks of bank interest
2. I had no capital gains for 2005
3. I have English citizenship and was hired as a local here

Keeping that in mind, plus the fact that I made a bit over $80,000, what forms exactly do I need? Is it just:

1040
Form 1116 Foreign Tax Credit

Do I need form 2555 as well?

Also, I'm assuming I can download all these online, right?

Many Thanks!
AMERICAN FREAK!


  • *
  • Posts: 2623

  • Liked: 102
  • Joined: Dec 2005
Re: Which forms do I need?
« Reply #1 on: March 18, 2006, 11:08:09 AM »
You are correct that you need these 3 forms plus:
a) Schedule A to report the interest and foreign bank accounts at the foot of the page
b) TDF 90-22.1 if applicable
c) 6251 to figure if AMT applies



  • *
  • Posts: 386

  • Death and taxes: I'd rather pay tax than be dead.
    • British American Tax
  • Liked: 0
  • Joined: Jul 2005
  • Location: London
Re: Which forms do I need?
« Reply #2 on: March 18, 2006, 12:08:24 PM »
And... 

To make sure you've dotted your i's and crossed all your t's, you might want to use a tax programme, which will check your maths for you.  Some good cheap ones are TurboTax, TaxACT, and TaxCut; I have only used TurboTax, which I found to be quite good for the self-preparer.

The saddest case I worked on last year was a lady who earned $25,000 and filled in her own 1040 and 2555 by hand.  She accidentally didn't carry a number from one line to the next.  The IRS "readjusted" her computation and assessed several thousand dollars of "unpaid" tax - when she actually didn't owe a penny.  Countless attempts on her own to resolve the issue never worked, and she continued to receive scary dunning notices.  Using tax software helps prevent this sort of simplistic error.

Liz Z i t z o w, EA
British American Tax


  • *
  • Posts: 52

  • Liked: 0
  • Joined: Mar 2005
  • Location: London
Re: Which forms do I need?
« Reply #3 on: March 19, 2006, 08:08:05 PM »

Thanks. Can someone please elaborate on what these are?:

b) TDF 90-22.1 if applicable
c) 6251 to figure if AMT applies

Roughly how much does Turbo Tax cost? Can you get free updates for it or use the same software again and again each year?

Thanks
AMERICAN FREAK!


  • *
  • Posts: 386

  • Death and taxes: I'd rather pay tax than be dead.
    • British American Tax
  • Liked: 0
  • Joined: Jul 2005
  • Location: London
Re: Which forms do I need?
« Reply #4 on: March 20, 2006, 09:12:15 AM »
www.irs.gov has all these forms.  TD F 90-22.1 is the Foriegn Bank Report.  6521 is the Alternative Minimum Tax (about 10% of all Americans now have some AMT requirements).  Read the instructions to find out more.  Or, the tax programme should compute them.  You buy a new programme every year as the laws and forms change every year.  Standard prices for a "deluxe" programme with all the forms seems to be about $20, plus or minus 20%.
Liz Z i t z o w, EA
British American Tax


  • *
  • Posts: 52

  • Liked: 0
  • Joined: Mar 2005
  • Location: London
Re: Which forms do I need?
« Reply #5 on: March 21, 2006, 03:47:08 PM »

Thanks for the advice Lizzit.
AMERICAN FREAK!


Sponsored Links





 

coloured_drab