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Topic: Anyone want to talk me through my taxes?  (Read 2848 times)

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  • Jewlz
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Anyone want to talk me through my taxes?
« on: June 09, 2009, 11:53:13 AM »
OK, I have to confess that I have no idea what I am doing, so someone will have to speak slowly, using small words so that I can understand and follow along.  :-[ I know I have waited a bit late... it's because this stuff gives me total anxiety. Also, I am right on the cusp of the 333 days living in the UK, which is just another excuse.

I have one W-2 from last year, from a US job. Can I file the 1040-EZ, or does it have to be the 1040?

In addition to filling in this document, (I assume it should be "married filing separately", since DH has never lived in the US?) I understand I am also to fill in another form in regards to my UK employment (I've earned less than $10,000 for last year at this job), and then I am to fill in a document regarding our bank details for the bank accounts here which have my name on them.

This is basically what I know, but when I look at the forms, my brain explodes. HELP!


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Re: Anyone want to talk me through my taxes?
« Reply #1 on: June 09, 2009, 12:05:49 PM »
I filed free online using Taxact. In the section of "Wages and Salaries", there are two subsections. One where you enter your W2 information and one where you report Foreign Earned income.
Then under the section "Other Income" choose the "Foreign Earned Income Exclusion" section and fill out the information to exclude the income you've earned while in the UK.

I found it all pretty confusing at first, and used a few online tax sites before I found one that made sense. I just got refund last week, so I think I did everything right!
Dated long distance: 2000-2005
Married: May 2005
Both lived stateside: 2005-2008
Moved to the UK/FLR: May 2008
ILR: May 2010
British Citizenship: January 2012
British Passport: March 2012


Re: Anyone want to talk me through my taxes?
« Reply #2 on: June 09, 2009, 01:05:43 PM »
I use Turbo Tax which you can download online. It takes you through step by step and is really easy. Definitely worth it. IMO


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Re: Anyone want to talk me through my taxes?
« Reply #3 on: June 09, 2009, 01:10:17 PM »
I have used TurboTax in the past, but I wasn't sure I could use it as an expat. Really, I'm just commenting on this thread in case somebody takes Jewlz up on it...I could use a walkthrough myself.

Aren't we technically late now? The gubmint is going to owe me a few bob -- and my experience is, they don't care if you're late when they owe you money -- but it's been in the back of my mind that I've blown the deadline.


  • Jewlz
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Re: Anyone want to talk me through my taxes?
« Reply #4 on: June 09, 2009, 01:22:41 PM »
Aren't we technically late now? The gubmint is going to owe me a few bob -- and my experience is, they don't care if you're late when they owe you money -- but it's been in the back of my mind that I've blown the deadline.

Eeeek! I hope not! From what I have read on the forum, expats get an automatic 2 month extension, making our tax deadline June 15th. I'm postmarking mine ON June 15th, just to make sure I have cleared the 333 days of living out of the country guideline, thingy. I'm right on that mark. 

Also, the form asks me if I have passed the "physical presence test" to show I'm an expat or somesuch. What the heck are they talking about?

Thanks for all the advice, I think I might look into that Taxact thing, since it's free! :)



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Re: Anyone want to talk me through my taxes?
« Reply #5 on: June 09, 2009, 01:57:11 PM »
My understanding is that there are two ways to qualify for "Foreign Earned Income Exclusion". One is to have been outside the US for a full tax year, and the other is to have been physically present outside the US for a year. When you do Taxact's Foreign Earned Income Exclusion section they walk you through the guidelines for qualifying.

I filled out the TurboTax stuff, but couldn't find a separate section for Foreign Income. It seemed like they wanted you to enter it as a W2, and I didn't feel completely comfortable with that. Maybe I was missing something.
I also nearly finished a return with one online company (perhaps TurboTax??) and at the very end they said they wouldn't process my return online since I would have to include the "Foreign Earned Income Exclusion" form. I was going to have to mail my return in (and they were going to charge me $30 even though it was supposed to be free?!).

I tried filling in returns with TurboTax, H&R block, and Taxact, and found the latter the easiest to use for my particular circumstances.

Dated long distance: 2000-2005
Married: May 2005
Both lived stateside: 2005-2008
Moved to the UK/FLR: May 2008
ILR: May 2010
British Citizenship: January 2012
British Passport: March 2012


  • Jewlz
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Re: Anyone want to talk me through my taxes?
« Reply #6 on: June 09, 2009, 02:03:02 PM »
OK, well I don't apply for Foreign Earned Income Exclusion, I guess, since I have lived here for 11 months and I lived in Texas for the first half of last year, so I do have some stateside income to report. Isn't there some other form I am supposed to fill in?
I started up with Taxact and I couldn't even fit my address in the way they wanted me to do it.  ???


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Re: Anyone want to talk me through my taxes?
« Reply #7 on: June 09, 2009, 02:40:25 PM »
Hmm.... then I would apply for an extension. I think it's free and then you will have been outside the US for a full 12 months when you file and it should make things a bit simpler.
Dated long distance: 2000-2005
Married: May 2005
Both lived stateside: 2005-2008
Moved to the UK/FLR: May 2008
ILR: May 2010
British Citizenship: January 2012
British Passport: March 2012


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Re: Anyone want to talk me through my taxes?
« Reply #8 on: June 09, 2009, 02:48:39 PM »
Eeeek! I hope not! From what I have read on the forum, expats get an automatic 2 month extension, making our tax deadline June 15th. I'm postmarking mine ON June 15th, just to make sure I have cleared the 333 days of living out of the country guideline, thingy. I'm right on that mark. 

I'm sure you're right. I had "early June" in my head is all...


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Re: Anyone want to talk me through my taxes?
« Reply #9 on: June 09, 2009, 03:54:28 PM »
If you do not qualify for the foreign earned income exclusion under the physical presence test yet you can file either a Form 4868 or Form 2350 postmarked by June 15th.

The Form TD F 90-22.1 (which carries a minimum $10,000 penalty for late filing) must be RECEIVED by the IRS by June 30th.


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Re: Anyone want to talk me through my taxes?
« Reply #10 on: June 09, 2009, 08:58:39 PM »
Re: State Taxes

Can any one help with whether I claim as a full year resident or partial year? 

I only lived in Georgia for 9 months, but it's not like I've earned income in another state.  I think I'll be screwed on a deduction if I claim part year, so I'm tempted to file full year and let them sort it out if I'm wrong.   :P
...the whole damn thing will turn
and return redefined, rearranged, rearranged...


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Re: Anyone want to talk me through my taxes?
« Reply #11 on: June 09, 2009, 10:12:26 PM »
Georgia is a domicile based State and does not give credit for foreign taxes.  If you are domiciled in Georgia you remain resident until you acquire a new domicile elsewhere.

Merely moving to the UK does not change domicile.


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Re: Anyone want to talk me through my taxes?
« Reply #12 on: June 09, 2009, 10:22:59 PM »
thanks for the reply Guya.

I'm not trying to claim any foreign tax credits as I didn't earn any income in the UK in 2008 after I left.


...the whole damn thing will turn
and return redefined, rearranged, rearranged...


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Re: Anyone want to talk me through my taxes?
« Reply #13 on: June 10, 2009, 08:32:12 AM »
I don't know your circumstances but if you brought income or gains from Georgia to the UK then there may be UK tax payable on the remittance.  To avoid double taxation in such circumstances one might choose to "resource" the relevant US income as foreign income on the Form 1116 for 2008.


  • Jewlz
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Re: Anyone want to talk me through my taxes?
« Reply #14 on: June 10, 2009, 02:08:56 PM »
I wish there was a sticky topic on where to get started with the taxes, for those of us who are doing them the first time, but I understand everyone's situation would be different. Nonetheless, here is what I have done, and someone can correct me if I have misunderstood something, I hope.

I printed out the Tax Guide for Americans and Resident Aliens Abroad and read through that pretty carefully (a very exciting read, let me tell you!) Here is what I understand: As I have lived here for just over 330 consecutive days, I pass the physical presence test, and my tax home is in the UK, since this is where I live and work. So I checked off everything on the list and I am eligible to use the 2555-EZ to report my foreign earnings. I filled this in correctly according to the instructions and came up with a total in US dollars of the foreign earned income exclusion and have put that in the correct area on the 1040, to be acknowledged, but disregarded from my total earnings. The 1040 is then filled in as usual, with the W-2 information from the job I had in the US last year. So I am getting somewhere, finally! (As you can tell, I am very proud of myself!) I am also filing single, as DH is not an American citizen or resident alien, and has no social security number. I earned less than $12,000 at my American job last year, so I assume this means I am eligible for the Earned Income Credit, although I have no children, the amount of which to be determined by the chart in the instruction book. I think so far, things are going pretty well.
What I am still unsure of is the Foreign Tax Credit. I have paid taxes here, and I am not sure if I am to take the credit, or does the exclusion rule out the need to fill in the foreign tax credit?
As far as the TD F 90-22.1 is concerned, I just read this: "You must report accounts you hold in foreign banks and other financial institutions if your total balance is $10,000 or greater. The $10,000 threshold is for your aggregate account balances. In other words, your total across all your foreign accounts." So I assume since our total combine accounts do not equal this amount (yeah, we're broke) that I don't need to bother filling in this form.
Am I right so far? Can anyone tell me more about the foreign tax credit? Or is this just for those who don't qualify for the exclusion?
Thanks so much!!!!



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