| Posted By |
Message |
klingklang77
kraftwerk!
Member since 7/06 11487 total posts
Name:
Völlig losgelöst
|
US taxes for people living abroad is completely ridiculous!
I've always filed my taxes and never had to pay because I'm under the limit. But now for the first time I have learned that I must file a form if I have an account with over $10,000 in it at any time throughout the year.
Previously, we had separate accounts, but recently we got a joint account to make things easier. It does have 10,000 in it when we both get paid. But it's mostly his money and he isn't a US citizen or green card holder or anything. Sorry, but I think this is completely ridiculous and I can't see how this would be legal.
Back to having separate accounts, so I don't have to pay tax on what a non- US citizen makes.
/ vent over.
Message edited 5/27/2013 5:44:52 AM.
|
Posted 5/27/13 5:43 AM  |
| |
|
Long Island Weddings
Long Island's Largest Bridal Resource |
marycpa
LIF Adolescent
Member since 7/07 635 total posts
Name:
Mary
|
Re: US taxes for people living abroad is completely ridiculous!
Posted by klingklang77
I've always filed my taxes and never had to pay because I'm under the limit. But now for the first time I have learned that I must file a form if I have an account with over $10,000 in it at any time throughout the year.
Previously, we had separate accounts, but recently we got a joint account to make things easier. It does have 10,000 in it when we both get paid. But it's mostly his money and he isn't a US citizen or green card holder or anything. Sorry, but I think this is completely ridiculous and I can't see how this would be legal.
Back to having separate accounts, so I don't have to pay tax on what a non- US citizen makes.
/ vent over.
I think the form you are referring to is an informational form for overseas accounts that the value exceeded $10k at some point during the year. There should be no tax due.
It doesn't make sense why he would be subject to U.S. income tax. Only your income should be reported in the U.S.
|
| Posted 5/27/13 11:37 AM |
| |
|
klingklang77
kraftwerk!
Member since 7/06 11487 total posts
Name:
Völlig losgelöst
|
Re: US taxes for people living abroad is completely ridiculous!
Posted by marycpa
Posted by klingklang77
I've always filed my taxes and never had to pay because I'm under the limit. But now for the first time I have learned that I must file a form if I have an account with over $10,000 in it at any time throughout the year.
Previously, we had separate accounts, but recently we got a joint account to make things easier. It does have 10,000 in it when we both get paid. But it's mostly his money and he isn't a US citizen or green card holder or anything. Sorry, but I think this is completely ridiculous and I can't see how this would be legal.
Back to having separate accounts, so I don't have to pay tax on what a non- US citizen makes.
/ vent over.
I think the form you are referring to is an informational form for overseas accounts that the value exceeded $10k at some point during the year. There should be no tax due.
It doesn't make sense why he would be subject to U.S. income tax. Only your income should be reported in the U.S.
Yeah? I sure hope so. But what do they do with that info? Do I add it to my tax return (returns are due June 15th if you are overseas)? Ugh, I still think it ridiculous that I would even have to pay tax (I never go over the amount anyway) when I am not living in the US. I think the US is the only country that does this.
|
| Posted 5/27/13 11:48 AM |
| |
|
NK926
LIF Adult
Member since 6/05 1140 total posts
Name:
Natalie
|
Re: US taxes for people living abroad is completely ridiculous!
It's an informational form- there is no tax due. Your individual return is not impacted by it at all.
|
| Posted 5/27/13 11:59 AM |
| |
|
marycpa
LIF Adolescent
Member since 7/07 635 total posts
Name:
Mary
|
Re: US taxes for people living abroad is completely ridiculous!
They are looking for U.S. citizens who are not reporting investment income(capitalgains, dividends,interest). Many U.S. citizens were hiding money overseas and this forces them to report the accounts or face criminal penalties. I wouldn't worry if its only slightly over $10k in value.
All that form does is report the highest value of the account in US$, the name of the bank and account #.
|
| Posted 5/27/13 12:02 PM |
| |
|
jerrysgirl
I love my hot dog!!
Member since 6/06 5357 total posts
Name:
E & J
|
Re: US taxes for people living abroad is completely ridiculous!
Posted by marycpa
They are looking for U.S. citizens who are not reporting investment income(capitalgains, dividends,interest). Many U.S. citizens were hiding money overseas and this forces them to report the accounts or face criminal penalties. I wouldn't worry if its only slightly over $10k in value.
All that form does is report the highest value of the account in US$, the name of the bank and account #.
I think the form was brought out after September 11. I know that if someone bought american express checks over $10,000 we had to fill out this form also at my old job.
|
| Posted 5/27/13 12:04 PM |
| |
|
klingklang77
kraftwerk!
Member since 7/06 11487 total posts
Name:
Völlig losgelöst
|
Re: US taxes for people living abroad is completely ridiculous!
Well it's good to know that I won't have to pay anything on it. My DH was pretty annoyed though. For his own privacy, he shouldn't have to do this. He isn't a US citizen and it's really none of the IRS's business about what money he has.
And I completely agree.
|
| Posted 5/28/13 6:05 AM |
| |
|
MrsO
Big Brothers to Be
Member since 1/07 4521 total posts
Name:
Maureen
|
Re: US taxes for people living abroad is completely ridiculous!
Posted by klingklang77
Well it's good to know that I won't have to pay anything on it. My DH was pretty annoyed though. For his own privacy, he shouldn't have to do this. He isn't a US citizen and it's really none of the IRS's business about what money he has.
And I completely agree.
If he wants to keep it private then don't hold the account in both your names keep seperate accounts
|
| Posted 5/28/13 9:26 AM |
| |
|
TheLucille2
Yayicanpickmyowntitle!
Member since 6/11 1058 total posts
Name:
|
Re: US taxes for people living abroad is completely ridiculous!
Posted by marycpa
Posted by klingklang77
I've always filed my taxes and never had to pay because I'm under the limit. But now for the first time I have learned that I must file a form if I have an account with over $10,000 in it at any time throughout the year.
Previously, we had separate accounts, but recently we got a joint account to make things easier. It does have 10,000 in it when we both get paid. But it's mostly his money and he isn't a US citizen or green card holder or anything. Sorry, but I think this is completely ridiculous and I can't see how this would be legal.
Back to having separate accounts, so I don't have to pay tax on what a non- US citizen makes.
/ vent over.
I think the form you are referring to is an informational form for overseas accounts that the value exceeded $10k at some point during the year. There should be no tax due.
It doesn't make sense why he would be subject to U.S. income tax. Only your income should be reported in the U.S.
No tax will be due. It's for reporting purposes only.
|
| Posted 5/28/13 9:51 AM |
| |
|
CrankyPants
I'm cranky
Member since 7/06 18178 total posts
Name:
Mama Cranky
|
Re: US taxes for people living abroad is completely ridiculous!
Posted by klingklang77
Well it's good to know that I won't have to pay anything on it. My DH was pretty annoyed though. For his own privacy, he shouldn't have to do this. He isn't a US citizen and it's really none of the IRS's business about what money he has.
And I completely agree.
It's the price to pay for being associated with an American
I know 10K is the number that the US uses as a trigger to look for a lot of things-i.e. money laundering, etc
I don't think you need to pay extra taxes on it though.
|
| Posted 5/28/13 9:53 AM |
| |
|
ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
|
Re: US taxes for people living abroad is completely ridiculous!
Posted by MrsO
Posted by klingklang77
Well it's good to know that I won't have to pay anything on it. My DH was pretty annoyed though. For his own privacy, he shouldn't have to do this. He isn't a US citizen and it's really none of the IRS's business about what money he has.
And I completely agree.
If he wants to keep it private then don't hold the account in both your names keep seperate accounts
If you are filing your US Taxes Married Filing Jointly, the US government will still want to know about his assets (even if they are in his own name).
http://www.taxesforexpats.com/expat-tax-advice/foreign-spouse.html
|
| Posted 5/28/13 1:22 PM |
| |
|
klingklang77
kraftwerk!
Member since 7/06 11487 total posts
Name:
Völlig losgelöst
|
Re: US taxes for people living abroad is completely ridiculous!
Posted by ave1024
Posted by MrsO
Posted by klingklang77
Well it's good to know that I won't have to pay anything on it. My DH was pretty annoyed though. For his own privacy, he shouldn't have to do this. He isn't a US citizen and it's really none of the IRS's business about what money he has.
And I completely agree.
If he wants to keep it private then don't hold the account in both your names keep seperate accounts
If you are filing your US Taxes Married Filing Jointly, the US government will still want to know about his assets (even if they are in his own name).
http://www.taxesforexpats.com/expat-tax-advice/foreign-spouse.html
I file married separately. He earns more than me, and I fall within the limit of money I can earn without being taxed in the US.
Am I filing wrongly? Why would I file married jointly? We don't really intend on moving back to the US ever.
ETA: They really need to do away with citizen based taxation. The US and Eritrea are the only countries that do that.
ETA: Off the topic of FBARs and back on tax returns. I read that link and it says I would require a tax identification number for my husband if I filed Married Jointly. I always did separately and in the space for his SSN I just wrote N/A. Oh dear, I hope I haven't been filing wrongly. He refuses to get a Tax Identification Number, and he doesn't see any need why the US would need his income and why he would pay tax on his income. He would have to pay because he would be over the allowable limit. Help!!!
Message edited 5/28/2013 4:08:29 PM.
|
| Posted 5/28/13 3:33 PM |
| |
|
