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Topic: Making sure I am doing this right! - Filing US Fed and State tax  (Read 1273 times)

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Hi all,
My first time filing taxes in the US since living in the UK outright!
My 2007 taxes were a different beast since was living in the US up until end of Dec.
Now I am starting on my 2008 taxes and haven't any income in the US.
I believe all I do is fill out 1040 (do I put anything under income or is that US income only?)
and also 2555 (what does bona fide residence mean?)
and send them to the IRS (can I do this online)
and then since I'm still considered a VA domicile resident (groan) fill out that form (again do I claim my UK wages or are they just asking about US earnings?)
The only earnings I have are interest from my US bank accounts. I figure this shouldn't be too difficult but let me know if you're an expert on this subject and/or what anyone else has done (and I'm single - well engaged but single for lack of intensive purposes)!
Thanks in advance x


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Re: Making sure I am doing this right! - Filing US Fed and State tax
« Reply #1 on: January 29, 2009, 11:58:39 AM »
Also if I make less than $87,600 USD do I have to file at all?


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Re: Making sure I am doing this right! - Filing US Fed and State tax
« Reply #2 on: January 29, 2009, 12:04:45 PM »
Yes you need to report it.  I couldn't file online because my spouse is an NRA without a ITIN (or whatever it is). 

I don't need to file in PA, hooray, but it only asks about income earned in the state.  I am not sure about VA, sorry.


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Re: Making sure I am doing this right! - Filing US Fed and State tax
« Reply #3 on: January 29, 2009, 01:29:54 PM »
Yes you have to file a Federal return reporting worldwide income - whether or not taxable by the UK; you may also need to file TD F 90-22.1 to disclose foreign bank accounts, debit cards etc.

Virginia is a State where residence equals domicile, so unless you have abandoned your VA domicile you are required to file in VA and doubtless pay tax to thta State on worldwide income.


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Re: Making sure I am doing this right! - Filing US Fed and State tax
« Reply #4 on: January 29, 2009, 02:50:28 PM »
ah the plot thickens! is that only if my bank accounts total over $10K? Does that include savings?
Also re: Va domicile resident - I rented and then lived with my parents before I moved so I don't have any sort of property there, or address my name is associated with (aside from my parents place). Do i still have to file as a resident then? I figure that would make me a nonresident - I don't have any money in any VA banks either (just the likes of Charles Schwab)
Thanks


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Re: Making sure I am doing this right! - Filing US Fed and State tax
« Reply #5 on: January 29, 2009, 11:09:18 PM »
ah the plot thickens! is that only if my bank accounts total over $10K? Does that include savings?
Also re: Va domicile resident - I rented and then lived with my parents before I moved so I don't have any sort of property there, or address my name is associated with (aside from my parents place). Do i still have to file as a resident then? I figure that would make me a nonresident - I don't have any money in any VA banks either (just the likes of Charles Schwab)
Thanks

If at any point your aggregate balance exceeded that $10,000 limit than yes you report accounts, UK personal pensions, debit cards, oyster cards, etc etc

Where are registered to vote, where is your drivers license? Are they VA?


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Re: Making sure I am doing this right! - Filing US Fed and State tax
« Reply #6 on: January 29, 2009, 11:41:16 PM »
If at any point your aggregate balance exceeded that $10,000 limit than yes you report accounts, UK personal pensions, debit cards, oyster cards, etc etc

Sorry to disrupt this thread, but just a quick question for guya: do you have to declare all accounts to the Treasury? I was under the impression that you only need to declare the account that went over $10,000. We accidentally let our joint checking account go over at one point over the summer...does this mean I have to declare all of my accounts? (which would otherwise be a couple of bank accounts with close to $0 in them and my credit cards). If so, I'm even more annoyed with myself. Not a huge deal, I guess, but I just don't like the idea of this form, and have tried to avoid having to file it at all cost.
« Last Edit: January 29, 2009, 11:47:35 PM by kate_mate »


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Re: Making sure I am doing this right! - Filing US Fed and State tax
« Reply #7 on: January 30, 2009, 11:16:13 AM »
Kate - penalties for failure to file or filing an incorrect form are equal to 50% of the balance of each account for each year - the instructions are horrid I agree but they do indeed require reporting of all accounts in the circumstances you describe in my humble opinion!


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Re: Making sure I am doing this right! - Filing US Fed and State tax
« Reply #8 on: January 30, 2009, 12:47:05 PM »
Ok this 1040 is confusing me. Do I get taxed twice on foreign earnings or something? It seems like it when I am doing this worksheet - it looks as though I am adding my earnings twice on the Foreign Earned Income Tax worksheet. Am i doing something wrong?


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