Well we are getting closer to taking off and starting on our adventure! Fast question for you veterans. Is there a certain amount of days that we have to stay out of the USA so our $ earned is tax free? I am sure this is a dumb question but I really have no idea. It's all new to me! I suppose we need to find a tax accountant but I am not sure anyone around here is familiar with the overseas tax laws with Indonesia. I would sure appreciate any help or words of advice I can get.
Thanks a lot.
:)
Taxes Overseas
-
mishmumkin
- Posts: 16
- Joined: Thu Aug 23, 2007 7:25 pm
Re: Taxes Overseas
[quote="shansar"]Well we are getting closer to taking off and starting on our adventure! Fast question for you veterans. Is there a certain amount of days that we have to stay out of the USA so our $ earned is tax free? I am sure this is a dumb question but I really have no idea. It's all new to me! I suppose we need to find a tax accountant but I am not sure anyone around here is familiar with the overseas tax laws with Indonesia. I would sure appreciate any help or words of advice I can get.
Thanks a lot.
:)[/quote]
Keep in mind that if you're leaving in August to start teaching that your income from Aug-Dec is technically taxable. This is the advice that a good friend (accountant and overseas teacher) gave to me.
[b]You will have to do a special extension - best to do it early next year as soon as the form is online. Check it out on the IRS site: Form 2350. Here is a link: http://www.irs.gov/formspubs/article/0, ... 55,00.html and if it doesn't work, you can just search for the form. You send it in and they have to approve it, but they always do. It allows you to mail your form the next August when you will be eligible for bona fide residence. Some people suggest doing only 330 days physical presence test the first year to avoid any problems with uncle.[/b]
Once that first year of Bonafide residence is established, then you can return to the US for holidays during the year w/o concern of how many days you're in or out.
Thanks a lot.
:)[/quote]
Keep in mind that if you're leaving in August to start teaching that your income from Aug-Dec is technically taxable. This is the advice that a good friend (accountant and overseas teacher) gave to me.
[b]You will have to do a special extension - best to do it early next year as soon as the form is online. Check it out on the IRS site: Form 2350. Here is a link: http://www.irs.gov/formspubs/article/0, ... 55,00.html and if it doesn't work, you can just search for the form. You send it in and they have to approve it, but they always do. It allows you to mail your form the next August when you will be eligible for bona fide residence. Some people suggest doing only 330 days physical presence test the first year to avoid any problems with uncle.[/b]
Once that first year of Bonafide residence is established, then you can return to the US for holidays during the year w/o concern of how many days you're in or out.