Over $84200 for year 2006

Hi all
When you have to start worry about paying US tax for foreign earned income ?

Let say   ..
You can exclude up to $82,400 annually in foreign wages for year 2006
You can exclude amounts paid by your employer for housing  for example $24000 per year.

So you have to worry about paying tax when you start making more than $10800 or
£58804.

Is that about Right ? Are you paying US Tax now ? and how ?

Thanks
kal ..

PS .. I am trying to move to Tax section..
References

Foreign Housing Exclusion and Deduction
http://taxes.about.com/od/retirementplanning/a/ForeignIncome_4.htm

Foreign Earned Income Exclusion
http://taxes.about.com/od/taxhelp/a/ForeignIncome.htm


If you live and work outside the United States, you can exclude amounts paid by your employer for housing. This includes any amounts paid directly to you or on your behalf for housing, rent, education for your children, or tax equalization ("gross up" payments)..


Qualifying Expenses
The following expenses qualify for the foreign housing exclusion:

Rent,
Fair rental value of housing provided by your employer,
Repairs,
Utilities other than telephone,
Real property and personal property insurance (homeowners & renters insurance),
Occupancy taxes,
Nonrefundable security deposits or lease payments,
Furniture rental,
Residential parking fees,
Tax equalization payments paid by your employer,
Education expenses for your dependent children

I don't understand what you are trying to say.

The amount you are allowed to exclude would depend on the source of income and how the US defines your residency.

Also, unless you earn less then the minimum for filing taxes in the US, you still have to file and report all your UK income, then make deductions as appropriate.

Also, unless you earn less then the minimum for filing taxes in the US, you still have to file and report all your UK income, then make deductions as appropriate.

I am trying to figure out UK salary amount that it will make pay tax in USA ...
For example if  are making below $82400, you have to fill US tax but you end up paying nothing.
kal..
 

I wont try to answer your question directly as you didn't give enough info and some parts of the answer are dependent on your individual circumstances.  However, you may have to pay no tax even if you make well over $82,400 because taxes you pay to Inland Revenue can be subtracted from what you owe to the IRS.

I'll try to post more this week if I get a chance to look at my info at home.

I think I get what your question is... Not sure though!!!

Question:  When do you have to worry about PAYING tax, as opposed to FILING tax?

Answer:  You have to file if your income is over the standard deduction combined with one exemption.  But paying tax is another matter.

When your income from wages and other things (including child benefit, employer pension contributions, interest, dividends, PFICs, etc.) is greater than the combined total of:
   (a) wages over $82,500 (indexed annually for inflation so bigger next year)
   (b) your standard deduction (or itemized deduction if this is greater)
   (c) your exemptions.

If you are over this amount, which alas varies from person to person, then you *may* have US tax.  Most people have enough UK tax to offset the US tax, leaving them with little or no tax to pay. Usually what will end up triggering tax will be large amounts of UK-tax-free income, so that there won't be enough UK tax to offset the US tax. Typical sources of UK tax free income include ISAs, pension contributions, redundancy pay, certain lump sum pension payouts, and the sale of a primary residence. 

In short, you may never pay US tax return in the entire time you are here. 

Thanks You ALL..
This is a good news that we dont have to another Tax beside UK taxes.

I am trying to play with some numbers with Online Turbo Tax  for Free version..

https://turbotaxweb.turbotaxonline.intuit.com/open/registration/SignIn.htm

I am going to try simple cases as follow ...
Single person with salary of  100k  , 130K and 160K ....etc...

Regards,
Kal