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US Income Tax
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| posted by Gimpmask 187 days ago |
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Any free sites/ software our there that does US Income Tax for an individual? I need it to take into account of Foreign Earned Income.
Thanks a million.
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Having testicles is like being chained to the village idiot.
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| Junior Member |
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| 1496 Posts |
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| posted by Nasdaq_Index 187 days ago |
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try "Turbo Tax"
Remember! Respect is Earned not Given =)
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| Regular Member |
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| posted by Gimpmask 187 days ago (edited 187 days ago) |
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Thanks a lot, Nas.
Perhaps you can help me with a quick question.
Say, I'm a US citizen earning HKD1,000,000 a year.
I'll pay about HKD140,000 HK Taxes. I qualify for foreign earned income exclusion.
How much do I pay in US Income Tax?
This is my calculation.
HK$1,000,000 = USD 128,205
Exclusion amount = USD 85,700
Therefore my taxable income (128,205 - 85,700) = USD 42,505
Therefore, the tax US Tax I pay = USD 42,505 x 28% (is that the current rate, btw?)= USD 11,901
Or has "stacking" come into effect yet? ie, I will be taxed on my entrire income of USD 128,250?
Thanks a lot.
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Having testicles is like being chained to the village idiot.
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| Junior Member |
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| 1496 Posts |
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| posted by Nasdaq_Index 187 days ago (edited 187 days ago) |
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To be honest with you, KPMG has been assigned by my employer to prepare my HK and US taxes since I arrived here.
Based on your example above, 42,505 (diff between your gross and the inclusion amount) is the (only) amount subject to the US income tax the rest is exempt. As far as brackets, you need to check which bracket the inclusion amount fall under. I wish I know more, but this is a subject where I try to limit my exposure to, just because the more you know the more you'll have to worry about.
Turbo tax may not be the ideal software since it used by tax payers locally and doesn’t have option for expatriates. Have you checked out the IRS site?
Remember! Respect is Earned not Given =)
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| Junior Member |
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| 1496 Posts |
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| posted by Nasdaq_Index 187 days ago |
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One more important point, HK local tax can be used to offset some of your US tax liabilities.
Remember! Respect is Earned not Given =)
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| Regular Member |
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| posted by Gimpmask 187 days ago |
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quote:
Originally posted by Nasdaq_Index
Have you check out the IRS site?
For the last two days and it's a complete mind-f**k.
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Having testicles is like being chained to the village idiot.
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| Senior Member |
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| 9012 Posts |
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| posted by Juno Watt 187 days ago |
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Have you consulted Britney? I think she might be able to do your tax.
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| Junior Member |
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| Regular Member |
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| posted by Gimpmask 187 days ago |
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Thanks Boots,
I'm just trying to help a client out who's trying to save costs! (And I'm cheap.) Don't worry, I won't waste too much time on it. Just wanna get some understanding on how it works.
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Having testicles is like being chained to the village idiot.
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| Newbie |
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| posted by test 186 days ago |
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Don't scimp on money, use a professional.
I went to the US embassy for a tax session when I first moved here which was a good thing because I would have grossly overpaid in US taxes. As a result of this one session, I have muitiple property and stocks that I pay no taxes on to the US goverment.
Spend some money and you'll most likely save a lot.
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