Dual citizen moves from the US to another country to live and work there permanently.
Now it's the first time to file taxes. Can he use Form 2555-EZ ...
Dual citizen moves from the US to another country to live and work there permanently.
Now it’s the first time to file taxes. Can he use Form 2555-EZ every time he lives abroad to file taxes, if:
he’s a US citizen,
earned wages/salaries in a foreign country,
Had total foreign earned income of ,600 or less,
are filing a calendar year return that covers a 12-month period,
do not have self-employment income,
do not have business/moving expenses,
do not claim the foreign housing exclusion or deduction.
The question is about how to be eligible to pay nothing to the IRS if you income is much less than 87,600 and you spend less than 2 weeks per year in the US every year.
Another quesion is about line 14 from the 2555-EZ, I don’t understand that quesion.
Enter the number of days in your qualifying period that fall within 2008 (or any another year).
If you don’t visit the US and live permanently abroad, what the number should be there? 0? Or 365(366)?
Tags: 2555 ez, calendar year, dual citizen, foreign earned income, form 2555, irs, moving expenses, salaries, self employment income, us citizen, wages, weeks per year
Posted in Tax Deductions Q & A | 1 Comment »
Turbo Tax tells me "We don’t see a health insurance deduction in your return for 2009. Since you own a business, you can write off your health insurance premiums as long as you don’t have coverage available through an employer."
We have retiree health insurance through my FORMER employer. Does that count? Do I get a separate write-off for health insurance premiums since I have some self-employment income (which exceeds my premiums), or do I add it on Schedule A to other medical deductions, which must exceed 7.5% of AGI before I get any deduction?
The former employer pays around 45% of the total cost of health coverage (not taxable to me), and I pay the other 55%. I want to know if my out of pocket share is fully deductible, or only on Sch. A when combined with other medical expenses.
Tags: agi, health coverage, health insurance, health insurance deduction, health insurance premiums, insurance, medical deductions, medical expenses, retiree health insurance, self employment income, turbo tax
Posted in Tax Deductions Q & A | 4 Comments »
My parents will file for a 1040A this year and one of the questions goes like this:
If your parents have filed or will file a 1040, were they eligible to file a 1040A or 1040EZ (question 84)?
Select Yes if your parents filed or will file a 1040 but were eligible to file a 1040A or 1040EZ.
In general, your parents are eligible to file a 1040A or 1040EZ if they:
Make less than 0,000 per year,
Do not itemize deductions,
Do not receive income from their own business or farm,
Do not receive self-employment income or alimony,
Are not required to file Schedule D for capital gains.
Your parents are not eligible to file a 1040A or 1040EZ if they:
Make 0,000 or more per year,
Itemize deductions,
Receive income from their own business or farm,
Receive self-employment income or alimony,
Are required to file Schedule D for capital gains.
If your parents filed or will file a 1040 to claim Hope or Lifetime Learning credits, and they would have otherwise been eligible to file a 1040A or 1040EZ, you should answer "Yes" to this question.
Select No if your parents filed or will file a 1040 and were not eligible to file a 1040A or 1040EZ.
Select Don’t know if your parents filed or will file a 1040 and do not know if they were eligible to file a 1040A or 1040EZ.
So if my parents are filing for the 1040A and not the 1040 do I put yes or I don’t know?
Tags: 1040a, 1040ez, alimony, capital gains, lifetime learning, own business, parents, self employment income
Posted in Tax Deductions Q & A | 1 Comment »