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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (607232)	4/9/2011 8:05:54 AM
From: steve harris	2 Recommendations Read Replies (1) \| Respond to of 1578005

The point was the left's end justifies the means, to them, the myth of the rich paying no taxes must be perpetuated to justify their agenda. You're trying too hard Elroy. :)

To: Elroy who wrote (607232)	4/9/2011 11:03:53 AM
From: Jim McMannis	1 Recommendation Respond to of 1578005

They don't understand tax treaties...no surprise there.

To: Elroy who wrote (607232)	4/9/2011 8:17:39 PM
From: J_F_Shepard	Respond to of 1578005

Not so fast Elroy.....it's not that simple... we all know about deducting state taxes, real estate taxes, medical, etc....but see below for the facts on foreign earnings. bankrate.com "Under U.S. tax laws, the worldwide income of any U.S. citizen or resident alien is subject to tax. It doesn't matter if you're living in the United States or overseas, or the money came to you as wages, independent contractor payments or unearned income from investments, pensions, rents or royalties. The Internal Revenue Service is due its legal percentage. There is a bit of a break for U.S. taxpayers who live abroad and meet certain requirements. These worldly citizens may be able to exclude all or a portion of their foreign earned income from the American tax code. Unfortunately, though, some changes to the housing portion of this tax benefit mean that some U.S. workers with international postings will likely be using any tax savings to pay for housing costs that now get less favorable treatment. Good and bad foreign income news First, the good news. The amount of foreign income a worker can exclude from U.S. taxation on a 2009 return is $91,400, up from the prior year's $87,600. The low inflation rate means that for 2010, the excluded income amount edges up to just $91,500. Read more: Figuring your foreign income exclusion bankrate.com Filing method remains the same While income and housing exclusion amounts have changed, eligibility requirements to claim them have not. In order to exclude any overseas earnings from U.S. taxation, you must meet two tests: 1. You have a tax home in a foreign country. 2. You meet either the Internal Revenue Service's bona fide residence or physical presence requirements. Basically, your tax home is your regular or principal place of business, employment or post of duty. The IRS wants to be sure that you actually moved abroad rather than simply traveled there periodically to earn money. And you're not totally off the tax hook. If the foreign country has income tax laws, you cannot claim to be exempt from them. The second test requires you to establish a genuine home in the country for a full tax year or, failing that, spend at least 330 days abroad earning your income. As for your abode abroad, expenses you may count include rent, repairs, utilities (other than the telephone), real and personal property insurance, furniture rental and parking fees. But don't try to slip that villa on the Cote d'Azur past the IRS. The agency specifically says lavish or extravagant foreign housing expenses are not allowable. File Form 2555 along with your U.S. tax return to claim the foreign-earned-income exclusion and the foreign housing exclusion or deduction. If you don't have any housing expenses to claim, you may be able to file the simpler Form 2555-EZ. Different tax rules for U.S. possessions One final warning: Don't jump at that job in St. Croix thinking it will get you off the tax hook while simultaneously improving your tan. American Samoa, Guam, the Commonwealth of the Northern Mariana Islands, the U.S. Virgin Islands and Puerto Rico are U.S. possessions, not foreign countries under the tax laws. They have their own independent tax departments. If you have income from one of these U.S. possessions, you may have to file a U.S. tax return only, a possession tax return only or both returns. In some cases, you may have to file a U.S. return, but be able to claim a possession exclusion similar to the foreign-earned-income exclusion. Information on the available tax exclusions and requirements can be found in IRS Publication 570, Tax Guide for Individuals With Income From U.S. P Read more: Figuring your foreign income exclusion bankrate.com