Completing form 1040 – the face of your tax return – us expat taxes iphone 5 data recovery software _ data recovery
How do you report your income on your US expat taxes while you live abroad? While living abroad, your income is reported the same way it would be if you were living in the US. Database questions for interview Database key definition If you have earned income abroad and are wondering how to report it on your US expat taxes, this guide will prepare you with what you need to know to report your income to the IRS. Database cleaner Database key field Reporting Your Income on US Expat Taxes
Good recordkeeping throughout the year is essential to accurate preparation of your US expat taxes — no matter the form you are filling out. Data recovery hard disk Database knowledge This is particularly important when it comes time to report all of your foreign earned income, as nothing can be overlooked. Data recovery jakarta Database keywords Note that income must be reported regardless of where it was earned, what taxes were already paid on it, and what currency it was earned in.
If you have earned any form of the above income, you are going to need to have documentation to explain how the income was earned and prove that the amount reported on your US expat taxes is indeed the true amount in the event of an IRS audit.
You should receive many of these documents from their respective distributors throughout the calendar year, but it is important to keep everything organized so that information is available when it is time to fill out your Form 1040 for US expat taxes. 7 data recovery suite registration code Database kernel Completing Form 1040 for US Expat Taxes: Brian and Sarah Expat
Once you’ve gotten all of the income and deductions associated with your return, you’ll be ready to complete Form 1040 of your US expat taxes.
Data recovery raw Database key value To better demonstrate the process of completing the form, let us introduce you to Brian Expat.
Database keys with example Brian and his wife, Sarah, are US citizens and have lived in Pennsylvania all their lives. Database library 510 k database They got married in 2000 and have been living in Thailand ever since. Data recovery ssd 510 k database fda They also have two small children, Kevin and Audra Expat.
Brian works for a Thai company that handles American clients and has been working for a US firm in Thailand since 2000. Data recovery on iphone 510 k database search Brian has been earning just over THB 3,000,000, which translates into $100,500 at the year’s average annual exchange rate. A data recovery tool N k database Sarah, on the other hand, does freelance writing from her home office while taking care of their young children, which earned Sarah $10,000. Data recovery expert 10k database They have a savings account back in the US that generated $1,000 in interest income. Data recovery jobs Database languages Their last source of income in 2008 was the sale of their second property back in the US, which landed a gain of $20,000 — pretty good with the volatile markets in 2008!
For their deductible expenses, Sarah went to school for a Thai course online that was administered by the US Department of Education. Database concepts 6th edition Database link This cost $300 for six weeks and was work-related, as she is attempting to have articles published in Thai. Database kernel Database lock She also has expenses from her business, including a new computer, that total $1,000. Raid 5 data recovery software Database log horizon Lastly, Brian is still paying back his loans for his education back in Pittsburgh, allowing him to deduct the $200 in interest that he paid.
The first part of filling out Form 1040 is going to be completing the information section. Data recovery pro Database link oracle This includes your name, your spouse’s name (if filing jointly) and any dependents that you may be claiming. Data recovery tools mac Database logo Since Brian and Sarah are filing jointly this year, they will both be included in their section. Z wave database Database life cycle Their childrens’ information is also provided.
Next, Brian and Sarah are going to report their income on their US expat taxes by using the appropriate tax documents from Brian’s employer, Sarah’s accountant, the sale of their property and the bank statement proving the interest they earned. Database orm Database library Because they are both US citizens who have lived abroad the entire year, they are eligible for the Foreign Earned Income Exclusion (FEIE). Database workbench Database list The FEIE will apply to each of them separately. Database best practices Database lyrics For 2008, the maximum amount of FEIE was $87,600 per qualifying person. Database schema Snl database Because of this, Brian will be eligible to exclude $87,600 of his $100,500 in wages, and Sarah will be able to exclude the entire $8,700 she earned from freelance writing. Data recovery external hard drive Mail database They fill out Form 1040 as seen below.
The next step is going to be identifying their Adjusted Gross Income for their US expat taxes. Database 1 to many Database management software This includes deducting Brian’s student loan interest and half of the self-employment tax paid by Sarah (since Thailand and the United States do not have a Totalization agreement). Data recovery galaxy s6 Database migration You can see how they filled out Form 1040 below.
After calculating their total income and adjusting it for the appropriate deductions, Brian and Sarah have an adjusted gross income of $33,182. Os x data recovery software Database manager salary They are ready to calculate their tax owed on their US expat taxes. Database technology Database meaning Calculating Taxes Owed
The first step in determining how much you are going to need to pay on your US expat taxes is determining your taxable income. Database queries definition Database modeling Since Brian and Sarah have two children, they are able to claim four dependents on their income. Data recovery mac free Database mirroring Using the current rate of $3,500 per dependent, they are able to reduce their taxable income by $14,000 to $20,700. Data recovery phone Database management systems 3rd edition Additionally, Brian and Sarah are filing jointly, allowing them a standard deduction of $10,900. Database normalization Database modeling tools This reduces their taxable income to $8,282.
Calculating your taxes owed on your US expat taxes can be intimidating, but the IRS provides you with useful tools to identify how much you owe. Data recovery quote Database management jobs If you made less than $100,000, you can find your tax rate on page 63 – 74 of the IRS’s Instructions for Form 1040. Database key types Gt m database If you earned more than $100,000, you are going to need to use the tables found on page 86 of the IRS’s Instructions for Form 1040.
Since Brian and Sarah earned less than $100,000 in taxable income, they can see the tax rate provided by the IRS on page 63-74, as shown below (for 2008).
For their total amount owed, Brian and Sarah are able to lessen their taxes with certain credits. Database instance M power database As expats, they are able to deduct $372 for the Foreign Tax Credit (attach form 1116) and an additional $1,000 for the child tax credit. Data recovery raid 0 E m database After adding Sarah’s self-employment tax, their total amount due is $1,921 as seen below: