I have been in TW for almost ten years, and during that time haven’t filed my U.S. taxes. I’ve never made nearly enough to be over the exemption amount, but as I understand it, they still want you to file so that it’s official. Is that correct?
So I’ll file a 1040 along with the 2555 (?) which documents the foreign income, right?
Trouble is, for a couple of those years I did not work…and before that, when I did work, I dont’ have any documentation for the income I made those years. I suppose I could go to TW tax dept and ask them for my records, which were filed on my behalf by my employer. This would be particularly dandy because two governments would have corresponding numbers.
Yet, a friend told me that he just “guesses” his number. (you are probably reading this, forumosa junky friend!).
[quote=“Rupert”]I have been in TW for almost ten years, and during that time haven’t filed my U.S. taxes. I’ve never made nearly enough to be over the exemption amount, but as I understand it, they still want you to file so that it’s official. Is that correct?
So I’ll file a 1040 along with the 2555 (?) which documents the foreign income, right?
Trouble is, for a couple of those years I did not work…and before that, when I did work, I don’t’ have any documentation for the income I made those years. I suppose I could go to TW tax dept and ask them for my records, which were filed on my behalf by my employer. This would be particularly dandy because two governments would have corresponding numbers.
Yet, a friend told me that he just “guesses” his number. (you are probably reading this, forumosa junky friend!).
Thoughts?[/quote]
If you want to get right with the IRS, they have something called the Streamlined Program in effect now. You basically just need to file three years of back taxes, and as long as you wouldn’t have owned any, which is pretty unlikely, you should be good to go. Also, if you have delinquent FBARs (if you’ve had over $10,000 total in foreign bank accounts at any point in a given year, you have to file these forms), you’ll need to file FBARs going back six years.
You can also do something called a “quiet disclosure,” which is basically the same thing without going through the official IRS program. Some people even just start filing from the present year going forward, but this is probably a more risky strategy.
When I got my taxes straightened out some years ago, I went back six years. I was well within the foreign earned income exclusion so I never owed anything.
Is there anything to do other than printing off the old forms and sending them in? I took care of 2013 and it is actually fairly easy to fill out the taxes as long as you didn’t make any money in America that year. If you did make money in two countries then it can be a damn nightmare. I should take care of 2010-2012 sometime but those years weren’t very complicated.
Is there anything to do other than printing off the old forms and sending them in? I took care of 2013 and it is actually fairly easy to fill out the taxes as long as you didn’t make any money in America that year. If you did make money in two countries then it can be a damn nightmare. I should take care of 2010-2012 sometime but those years weren’t very complicated.[/quote]
I’m not the best person to ask. I used an accountant when I did the six years in one go. It was very important to me at the time to get my taxes straightened so I was willing to pay to make sure it was done right. I still use an accountant now, even though it seems easy enough from the copy given to me each year. I use these guys:
Just a reminder. The foreign earned income exclusion is related to salary earned, but does not cover items like interest earned on bank accounts. Even if salary is under the excluded amount for foreign earned income exclusion other items require taxes to be paid.
ACtually, I’m still not clear: how do you show the income? You just pick a number out of thin air, write it on the line, and they believe you? Or do you need to attach some official documentation from the company you worked for?
So…you have never filed taxes before with U.S. IRS? For me, I previously used forms provided by my company for salary…plus forms provided by banks for interest earned on bank accounts. Copies of forms sent to my accountant and original forms kept in case of future IRS audit. IRS does not receive and forms from employers, banks, etc. IRS only needs the amounts entered on their IRS forms.
Right I undestand that. For my most recent job it’s no problem to line up the W-2s, but if I’m going back years, I’d have to go back to those jobs. So my question is, does the IRS require some documentation from the job, a W-2? Or can I just guestimate as my buddy does (see OP) and send them in?
Estimating is not a good idea in case you get audited and the figures don’t add up. All you need to do is go to the tax office and ask for your tax info for the last three years. Use the income figures on them to fill in the IRS forms. You don’t need to give the Taiwan tax documents to the IRS, but the figures need to be the right ones. If you get audited and the figures aren’t right, you’ll be in deep shit. Why guesstimate when the correct info is available for free from the tax office?
Estimating is not a good idea in case you get audited and the figures don’t add up. All you need to do is go to the tax office and ask for your tax info for the last three years. Use the income figures on them to fill in the IRS forms. You don’t need to give these forms to the IRS, but the figures need to be the right ones. If you get audited and the figures aren’t right, you’ll be in deep shit. Why guesstimate when the correct info is available for free from the tax office?[/quote]
But you have to convert to USD so some estimation is involved.
[quote=“Rupert”]Yeah that makes perfect sense. Should I go back three, or more years, for IRS?
Someone above said the FBAR was 6 years I think.[/quote]
Three years for income tax, six years for FBARs, but only if you need to file FBARs. If you’ve never had a total of over $10,000 in non-U.S. bank accounts at any point in the last six years, you don’t need to file them. You need to provide the exchange rate you used to convert your income into USD on the 1040 (use the year-end rate for that year), so any slight discrepancy there doesn’t matter, just as long as they know how you arrived at the figures.
Estimating is not a good idea in case you get audited and the figures don’t add up. All you need to do is go to the tax office and ask for your tax info for the last three years. Use the income figures on them to fill in the IRS forms. You don’t need to give these forms to the IRS, but the figures need to be the right ones. If you get audited and the figures aren’t right, you’ll be in deep shit. Why guesstimate when the correct info is available for free from the tax office?[/quote]
But you have to convert to USD so some estimation is involved.[/quote]
You probably should file. you are exempt from obamacare if you are a foreign resident, but the IRS is the one who determines whether you are a foreign resident. if the IRS doesn’t classify you as a foreign resident for the tax year, you are required to buy obamacare or pay penalties. that’s my understanding.