How (and if) to pay taxes if youХre a Yank
f us have the same old problems. Americans in particular. In fact, many Yankees out there might be shocked to find out that, no matter how far away you run, you are supposed to still file your tax forms.
This is the sort of information that any self-respecting American should pretend to ignore in front of Ukrainians. Assume a blase attitude; act as if you arenХt silly enough to actually pay your government; say you have never thought about filing. Then, next time you are alone, secure behind your oversized door, whip out this tip and read it, understand it, know it.
You see, there is nowhere that Uncle SamХs all-seeing eyes do not try to pry.
Tax season, as always, started on Jan. 1, although thereХs still a bit of time until the more infamous due date of April 15 (actually, itХs April 17 this year because April 15 is a weekend). Furthermore, residents living abroad qualify for a two-month extension. Still, the early bird catches the worm, and we Americans generally pride ourselves on our efficiency, anyway.
So, for single folk making over $7,050 and married couples making more than $12,750, get out your 1040s and start filling them out.
There is a bit of good news, however. If the government considers you a Тbona fide residentУ or you pass the physical presence test, your first $74,000 will be exempt, which doesnХt include a deduction for housing. The first test requires that you are settled with a degree of permanence (as if permanency exists here) and, preferably, in a home. The second is probably easier to establish Р those who have been out of the States for at least 330 days of 12 consecutive months qualify.
Of course, proving these stipulations requires filling out more forms. If you make less than 74K, file the 2555EZ form, and if you make more, hire an accountant instead of filling out the 2555 yourself.
U.S. government employees are not exempt and donХt qualify for the exclusions. Peace Corps volunteers, with their meager allowances, are no exception. Even they have a loophole, however. According to Publication 45, ТU.S. income taxes are forgiven for U.S. government, military or civilian employees who die as a result of wounds or injuries sustained outside the U.S. in a terrorist or military action directed against the U.S.У
All necessary forms and more detailed information is available on the Web, at www.irs.gov. And don’t forget, paying your taxes doesnХt make you any less of a man.
Jake Rudnitsky
