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Taro Toporific
03-25-2003, 11:05 AM
U.S. tax exclusion hits $80,000 cap
-the 2002 IRS exchange rate is 123.90yen to one US dollar (http://www.weekender.co.jp/new/030321/tax-taylor-030321.html)
Weekender.com / March 21

...in figuring U.S. taxes for 2002, the Internal Revenue Service puts the rate of exchange at \123.90 to the dollar, meaning that is the rate to which a taxpayer should convert his yen income. And, on the brighter side, the foreign earned income exclusion amount for U.S. overseas taxpayers has hit $80,000, the cap set by current legislation.

So if you made $80,000 or less (or the yen equivalent) last year, you have no taxes to pay. Even so, you still have to file a U.S. return.

How come? Well, for one thing, says Jerry, it is the law. For another, when you return to the United States and want to buy a house or re-establish your credit, many companies will ask to see returns for the past three years. And, if you are married to a Japanese and need a residence visa for her, gYou, as a sponsor, are required to show tax returns for three years.h
cstaylor
03-25-2003, 01:10 PM
You STILL have to file (and pay, depending on the state) state taxes... which is why a lot of Americans living abroad take residency in Florida (which has no state income tax). ;)

Also, you automatically receive a 2 month extension for filing (not paying... any money owed is due on the 15th), and you can apply for an additional 2 month extension with this (http://www.irs.gov/pub/irs-fill/f4868.pdf) document.

Don't forget, to be considered "out of the country", you must be residing outside of the U.S. for 330 of 365 days in that tax year (short vacations home don't count against you).
cstaylor
03-25-2003, 01:11 PM
Unfortuantely, I'm too proud to be from California to change my state residency. :wink:
Caustic Saint
05-25-2003, 07:50 AM
From govspot.com: (http://www.govspot.com/know/incometax.htm)

Seven states have no state income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two others, New Hampshire and Tennessee, tax only dividend and interest income.
Steve Bildermann
05-25-2003, 08:15 AM
Non-UK residents are not normally liable to UK tax on overseas income.
Thank you Mr. Harold Wilson
kamome
05-26-2003, 03:40 PM
Unfortuantely, I'm too proud to be from California to change my state residency. :wink:

As far as I know, if you have no US income (or de minimus US income), it's not really necessary to file your California state returns (although it still would be necessary to file your federal returns). That's not a legal conclusion, but rather a practical one. I can't remember the exact reason why, but that's the gist of the advice I have received from the guy who did my taxes.
cstaylor
05-26-2003, 03:55 PM
I'd rather not take that risk. ;)
Marked Trail
05-26-2003, 09:41 PM
Public Service Announcement: US tax time reminder via Fark.com (http://forums.fark.com/cgi/fark/comments.pl?IDLink=538511)

http://image.inkfrog.com/pix/DBubonic/Bushtaxplan.jpg

Also:
http://home.attbi.com/~wlarue3/bush.jpg
American Oyaji
05-27-2003, 08:34 PM
Pennsylvania doesn't incur taxes on those who work overseas.
Big Booger
05-28-2003, 02:00 PM
Unfortuantely, I'm too proud to be from California to change my state residency.

That explains a lot.
:D

I am gearing up to file my returns.. I might do it this weekend.. I started it back in February.. but I have just been putting it off till the last minute...
:P

Good to know I have no taxes to pay.. :D