Question About Taxes

arthur brode (☼Travelguide writer) says on Jul 17, 2006, 08:36:

arthur brode (☼Travelguide writer) says on Jul 17, 2006, 08:37:

mcraig says on Jul 17, 2006, 11:30:

taxes That sounds about right the time I retire here in the US at 70. I will have paid for my mortgage 30 years three kids to go to college an SS will not be there all after paying into it for 55 years . Me an my wife will be lucky to retire in poverty somewhere around Peru. I am so tired of the damm tax system in the US.

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Gator says on Jul 17, 2006, 14:34:

I also use Turbo Tax since

I also use Turbo Tax since my US generated funds are interest, pensions, etc. which gerneratge 1099's What I do, did, with my Colombian earning is my little secret. If you live in a foreign country you must file your return through:

Internal Revenue Service Center
Austin, TX 73301-0215

"SIC FRIATUR CRUSTUM DULCE. OBESA CANTAVIT."

"Credidi pretio parvo emere et magno vendere tibi in animo fuisse!" .

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Mr. Hollywood says on Jul 17, 2006, 21:53:

FYI The US congress this year eliminated the $80,000 foreign earned income exemption, so start saving your pennies to pay your 06 return.

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Miguel_Clavo says on Jul 17, 2006, 22:31:

Through International Living you can get "The Expatriates Tax Bible" by Richard L. Leonard..has lots of information, but was printed prior to the info provided by Mr Hollywood about the 80k exemption removal for 2006...i was not aware of that either, so i will confirm tomorrow with my taxman......

Just my opinion...

Miguel_Clavo...Listo!! Libertad!!!...Colombia es pasión!

"F.A.R.C..S.U.C.K.S"

"I would rather die living life, than to live a dying life."........ Oh, and my PM is always ON. Great Bumper Sticker: "Home of the Free, Because of the Brave"

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platano says on Jul 17, 2006, 22:35:

I use TurboTax, too... The whole process is online so it doesn't matter where you are living and the software walks you through, asking all the pertinent questions. You can quit in the middle of the process, go find some form you need, and then resume where you left off. It's easy! It's fun! I love paying taxes using TurboTax!plátano

plátano

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Miguel_Clavo says on Jul 17, 2006, 22:48:

Hey Platano! Dont forget to mark that little box where you can contribute $1 to the Anti-FARC fund on the tax form!!! =)

Just my opinion...

Miguel_Clavo...Listo!! Libertad!!!...Colombia es pasión!

"F.A.R.C..S.U.C.K.S"

"I would rather die living life, than to live a dying life."........ Oh, and my PM is always ON. Great Bumper Sticker: "Home of the Free, Because of the Brave"

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platano says on Jul 17, 2006, 23:07:

Miguel_Clavo... I pay as much as I can afford. I would pay more if I had it. I love the United States government. A large percentage of my tax dollars is going to fund all kinds of military operations all over the world, including in Colombia.

And don't forget you can make voluntary extra payments to the USA Treasury to lower the USA national debt.plátano

plátano

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Miguel_Clavo says on Jul 18, 2006, 14:35:

Foreign Earned Income Exclusion has not been eliminated for Taxyear 2006. The Exclusion for 2006 has been raised to $82,400 but the taxes rate is different, so you will probably be paying more in taxes….the idea was to get more tax money from Americans working abroad…There have been some modifications associated with the FEIE, so it might behoove you to read the following 3 links…..each link has a short article regarding the changes in more detail.

Here are 3 links:

http://www.us.kpmg.com/microsite/tax/ies/2006_Flash_Alerts/fa06-098.pdf this one is in the form of an alert, stating only the basics.

http://www.iht.com/articles/2006/05/26/news/ataxes.php this one is pretty informative, and short.

http://www.taxmeless.com/2006expatlawchange.htm this one is a little longer but is from a CPA who specializes in Expat Tax laws.

Hope it helps…I spoke with the IRS today and he/she/it confirmed the FEIE is still in effect for 2006, and he/she/it mentioned that Congress had modified it, not eliminated it, in May, but he/she/it has not received the IRS bulletin about it yet.

Plátano, just so you dont feel that your taxdollars were wasted, i will return some of that money to you in the form of some beverages of your choice in Colombia someday soon. =)


Just my opinion...

Miguel_Clavo...Listo!! Libertad!!!...Colombia es pasión!

"F.A.R.C..S.U.C.K.S"

"I would rather die living life, than to live a dying life."........ Oh, and my PM is always ON. Great Bumper Sticker: "Home of the Free, Because of the Brave"

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platano says on Jul 18, 2006, 18:03:

I'm so glad this topic came up... It is important for everyone who loves the USA to pay their taxes. It doesn't make sense to me when people say they are patriotic and then try to pay as little taxes as possible (or none!). We should pay our taxes joyfully if we are proud Americans! (in other words, we should put our money where our mouth is, talk the talk and walk the walk)

And don't forget you can make voluntary extra payments as often as you like to the USA Treasury to lower the USA national debt. It's the patriotic thing to do!plátano

plátano

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Mr. Hollywood says on Jul 18, 2006, 20:04:

Clarification Miguel is correct that the foreign income exemption was modified, not eliminated entirely. The two big changes are eliminating the housing exemption and changing the tax rate at which your first dollar earned above the exemption is taxed at.

Speaking myself as a guy who drives around Bogotá in a stretch limo throwing $100 bills out the windows every night, I don't get too weepy about people who make good incomes paying taxes. But those of you who are employed as, let's say, English teachers ought to be worried because your housing is now taxable as INCOME rather than being exempted. So while maybe Nueva Granada is paying you $40,000 a year to teach but they're giving you a nice apartment worth $20,000 a year to live in, you're now going to most likely owe taxes on that $20,000 in what was previously free rent. A friend of mine in the American Chamber of Commerce in a different country is in a big snit about this.

Here's an interesting link by none other than Newt Gingrich that explains a bit of the "policy" behind the tax changes.

http://www.aei.org/publications/filter.all,pubID.24604/pub_detail.asp

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Miguel_Clavo says on Jul 18, 2006, 23:56:

Like my taxman says "You would have to be an idiot to "make" more than $82,400 this year of foreign income" hahahahha.....due to his blinking eyes, i think that i know what he means..=) .but the kicker is that before you can take that exclusion, you have to be out of the country for something like 332 days, but dont quote me on the # of days.....but its close......=)

Just my opinion...

Miguel_Clavo...Listo!! Libertad!!!...Colombia es pasión!

"F.A.R.C..S.U.C.K.S"

"I would rather die living life, than to live a dying life."........ Oh, and my PM is always ON. Great Bumper Sticker: "Home of the Free, Because of the Brave"

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mcraig says on Jul 19, 2006, 15:20:

I don't think I could denounce my citzenship my dad was military till 1980 , my grandad left for WW2 at 16
didnt get back home till he was 20, he then went to Korea in 50. An 5 of my 6 uncles where in Vietnam an my dad was there for two tours. Me an my sister were born in military hospitals. An so I just couldnt sell them all out for money an this country everywhere you look an anybody you see has an opportunity. We are so lucky to live here. But then again ask me whe I am 70 living in a shack with my wife just getting old an miserable an I might be right behind the the denoucners myself. LOL

We should do okay my wife comes from a real affluent family. An its only her an her sister. An my wife has long way to go with all the household stuff we have to hire somebody to come in an clean ,she has her own career, an she is by far one of the worst cooks in the world I usually have to show her how to cook. So we do fine but she is the freaking cheapest person I have ever met besides her mother. It drives me nuts I gave her the damm check book an everything after 6 months of marriage because it would of caused us to get a divorce. She freaks out when you dont write down stuff in your check book. She would be mad at me for a week for buying a pack of smokes an not writing it down when we where out drinking. amazing

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mcraig says on Jul 19, 2006, 15:26:

Alternative minium tax screws us all middle class families congress put this in the late 60's to make sure rich people paid there share of taxes now after 45 years its still there. Except it never escalated with the cost of inflation or cost of living so the rich dont pay it anymore everyone in the middle class does its a rip off.

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Mr. Hollywood says on Jul 19, 2006, 21:06:

Strobers I think you misunderstood what I pointed out about housing. The cap on the housing DEDUCTION is one thing but what I was talking about is the fact that under the new laws it appears housing provided for an employee by an employer is now counted as INCOME. So if you're a gringo living in a $2,000 month apartment on the N. of Bogota (of which there are many) that your company pays for, you'll have to report that as an additional $24,000 as income, where before it just didn't really count.

Congress, of course, doesn't count State Department or Military housing as income, but then again those folks have no income exclusion anyway.

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lpdiver says on Jul 19, 2006, 21:45:

So why not... set up an offshore corporation and get paid there? It is fairly inexpensive and easy enough.


Tony

"cook some rice!"

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Miguel_Clavo says on Jul 19, 2006, 23:05:

dont underestimate the will of the US govt to get the money they think is due them......they have made significant inroads into the Panamanian banking system that most banks there are almost paranoid about hiding anyones money! and they are working just as hard in Switzerland as well! they know their is a ton of money with their name on it! =( they can track someones financials with just a couple of clicks on a keyboard!

lpdiver......the IRS has already put that one to rest! you are not the first to think of that!

Just my opinion...

Miguel_Clavo...Listo!! Libertad!!!...Colombia es pasión!

"F.A.R.C..S.U.C.K.S"

"I would rather die living life, than to live a dying life."........ Oh, and my PM is always ON. Great Bumper Sticker: "Home of the Free, Because of the Brave"

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mcraig says on Jul 20, 2006, 16:12:

I think you should check what your paying for you could be pay taxes for this

My taxes dollars go for paying for the largest military in the wolrd.

Go to pay for other schools rather than the school my kids go to year after year.

Goes to feed an house an give medical relief to illegal immigrants which now cost every middle class family $1.200 a year , While my healtcare insurance goes up higher an higher every year, food goes up every year, property tax an home insurance increase higher an higher. The people want to call me bigot because I dont care how many imigrants we have we are all imigrants but can they please sign up at the door an pay the same taxes as everyone.

Goes to support Palestine an Isreal to the tune of billions an all they will ever do is hate one another.

taxes go to pay for grants for kids to go College they dont have to pay back, when my kids dont qualify because me an my wife work so we are stuck paying for all three kids colllege education which is staggering in cost.

I pay a state an federal tax on gasoline on each gallon of gas I buy as the cost goes out of control an the goverment wont take a steo to stop the use of gas or buy alternatives.

Pay into a social security fund every paycheck an there will be no social security.

Taxes go the support the Iraq war for five years at a billion a day cost, For that kind of money you think it would be ober by now.

on an on an on

on an on ao on the middle class gets stuck paying all the taxes

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mcraig says on Jul 20, 2006, 19:06:

I always try not to get too fancy with my tax returns Because like the old saying if the IRS can bring down AL Capone they
can bring me down for sure.

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Mr. Hollywood says on Jul 20, 2006, 20:32:

Strobers The thing about the IRS is there's no statute of limitations for lying on your tax return and deliberate underreporting is a felony. They can seize just about everything you own in the US. It's a question of potential costs vs potential benefits.

So in answer to your question, sure, you could probably just "forget" that someone gave you a fancy apartment worth $2,000 a month and get away with it for years. If you're getting that subsidy from a US corporation that employs you overseas it will almost surely get reported. If it were, say, a Colombian school I wouldn't lose sleep over the IRS finding out.

US tax laws are so complicated as to be ridiculous. I wish someone would just tell me I owe 15% or 20% of gross and let me go away.

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Miguel_Clavo says on Jul 20, 2006, 20:38:

and that felony warrant will just be waiting for you when and if you ever decide to re-enter the US! that warrant will still be in the system long after you depart this world!=(

Just my opinion...

Miguel_Clavo...Listo!! Libertad!!!...Colombia es pasión!

"F.A.R.C..S.U.C.K.S"

"I would rather die living life, than to live a dying life."........ Oh, and my PM is always ON. Great Bumper Sticker: "Home of the Free, Because of the Brave"

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Mr. Hollywood says on Jul 20, 2006, 20:43:

My little life lesson When I was in my twenties I helped save a guy who had a heart attack right in front of me outside the public library. The next day his wife called to thank me and explained that right before his heart attack the IRS had just called to tell him they'd seized all his bank accounts and put a lien on his house from a tax liability from a business deal that was 15 years old.

I took that as a little lesson that skeletons in the closet can have very dire and unexpected costs.

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capitan1962 says on Aug 6, 2006, 19:06:

For what? To pay for a senseless war that I never agreed with, or to pay for one of the many illegal aliens here, to draw welfare and receive free health care? That is part of my plan to leave the United States.

A country ran by the largest crooks in the world. I was born here and have always been proud to be an American, that was until the year 2000 when the worst president in the history of the country, stole the election.

Minimum wage is the lowest it has been in 50 years but the idiots in Washington will not raise the minimum wage. That is after they just voted to give themselves another big raise. I say any man who can avoid paying one brown penny to the Federal Goverment needs to do so. This country is in the process of being given away and I refuse to help finance that. The USA will soon be the United States of Mexicans and Muslims.

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