It is almost tax filing time for 2008.
Unfortunately, I cannot file IRS Form 2555 for Foreign Earned Income Exclusion because I did not spend 330 days in Germany last year. If I were able to file this, only anything above $80,000 will be taxable. This will be taxed as ordinary income.
I may get to deduct all the costs necessary to maintain a residence abroad for work purposes. Not sure if I can do this even if I cannot file Form 2555.
No matter what, I get to file Foreign Tax Credit From 1116 for taxes already paid in Germany.
If I had any bank accounts with more than $10,000 at any time outside of the US, I have to file the Treasury Department From TDF 90-22.1, Report of Foreign Bank and Financial Accounts.
Since I moved this year, I should file Form 3903 for Moving Expenses. I have to use a separate form for each move to report transportation, storage, travel, lodgings, and more. I cannot deduct moving expenses reimbursed by an employer.
Since the Foreign Earned Income Exclusion only apply to federal taxes, this month I will register to vote in Texas, renew my driver's license in Texas, and open a checking and savings account in Texas so that my legal domicile is Texas, where there are no state taxes.
Fortunately (or unfortunately), I did not convert my 401k rollover into my Roth IRA in 2008. Otherwise, I would have had to file IRS Form 8606 to pay taxes for my Roth IRA conversion. I would have been taxed on my contribution and earnings as ordinary income.
I will do it in 2009, because this will be a low tax year for me. And I will try to max out at the 15% tax bracket.
Should I get an accountant? Or go TurboTax?
Showing posts with label tax American rothira irs foreignincome. Show all posts
Showing posts with label tax American rothira irs foreignincome. Show all posts
Wednesday, February 4, 2009
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