Tax filing for us - She worked 6 months in Colombia - none here

rjstuff says on Jan 14, 2006, 09:40:

This is for filing our US taxes. Can't edit my post to add this.

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caulfield2 says on Jan 14, 2006, 09:50:

Not really sure of the rules myself...I taught the first 8 months of the year in the US, then have been in Colombia working since.

I am not going to declare that income from Colombia on my US taxes...but that´s just me. I know that it gets taxed down here, so why should I have to pay taxes a second time?

I guess it will be a more interesting issue next tax year, when all of my income is from outside the US.

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Tinto (Moderator) (Trustee board) says on Jan 14, 2006, 10:23:

Experiment with one of the PC or online tax software programs. I suspect that between the standard deduction and/or the way brackets are structured for married people, $3000 USD equivalent in gross income is not going to make a lot of difference.

I wanted access to health care, housing and education, but, no, I get potholes, trash and silicone tits instead. -Desi.

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caulfield2 says on Jan 14, 2006, 10:30:

I wonder if it matters that I get approximately one-half my income in pesos, and free rent for my apartment (we get an allowance of $432 mil per month)?

The other half, I receive in dollars in December and June. Does it matter if the dollars leave the country or not?

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Crazy4Cali says on Jan 14, 2006, 20:09:

Unless... ...the company she worked for filed a W-2 in the U.S. I wouldn't worry about it.

...but I'm neither an accountant nor an attorney so what the heck do I know?

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silviat says on Jan 15, 2006, 16:24:

If she didnt earn it here Then it isn't taxable here, says my husband.

Anyway our accountant told us that if I had any bank accounts there (which I do) we need to report them, but they aren't taxable either.

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rjstuff says on Jan 16, 2006, 09:43:

So Silvia are you planning to file Married filing Joint and list your income as zero? I think that is the easiest way to handle it but I am not 100% sure - technically IRS (USA) taxes income from all sources (global income) and that means one should report their Colombian income on the 1040 and try and get a credit if they paid any taxes in Colombia (and how will they get the income/tax paper from their Colombian employer???) If the income statement (something similar to a W2) can be obtained - then it is not hard to do but without that its very hard.

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rjstuff says on Jan 16, 2006, 14:33:

OK - I think I know the answer now! Since she lived more than 330 days continously in Colombia she qualifies to claim Earned Income Exclusion (Form 2555.) So, basically I will file as Married filing Jointly and then report all of her Colombia income (as foreign income not reported on a W-2) then claim an Earned Income Exclusion for the same. Her being present in a foreign country for 330 days - some of which were in 2005 makes her eligible - little tricky how the rules are! Best wishes to all but I think the answer is in. Go Broncos - Super Bowl XL!!!!!

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silviat says on Jan 16, 2006, 20:49:

yeah well in our situation is pretty simple because I had no income in Colombia.

I was there from february to july waitting for the visa...

So you are a football man too? Are you the kind of sitting and watching everygame on sundays? Are you watching all of the play offs?

How does Monika take it?

It's so funny, I met Seth in Argentina and there wasn't football there so I never met his "footbal fan" angle. Anyway I've learnt to appreaciate the game and I sit with him and watch one game once in a while and the rest of the time I read my books while he watches his games.

I hope your team does well!

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rjstuff says on Jan 17, 2006, 18:10:

Thanks Silvia - I guess you guys root for Seahawks Maybe the Broncos will play the Seahawks in Superbowl! Well! she watches very little football if any - and she often sits at her computer chatting or emailing or on the phone chatting or in the bedroom watching her Colombian TV (or univision channels among others.) I didn't know that you didn't work before coming here this year - Monika worked till a month before the interview and then she quit. So! now that I know the tax angle I have posted it three times on Visa Journey and once here. Hopefully others can use this information. Best wishes

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