Have you considered treating your nonresident spouse as a resident for tax purposes?sundaymorningstaple wrote: ↑Wed, 16 Feb 2022 2:20 pmI spent 35 of the last 38 years without paying any US taxes either. Oddly enough, it wasn't until I retired that the perfect storm hit and now I'm being hit the last three years in a row since I retired. And will continue to get hit, albeit the sum is usually less than four digits to the left of the decimal point.
When I got SSNs for my kids it only took about 4 weeks — sent from Manila, that is the SS office covering this part of the world, and where the ITIN would come from. I suspect they are more efficient compared to SS offices in the US.sundaymorningstaple wrote: ↑Wed, 16 Feb 2022 8:45 pmYeah. Have been for 3 years and it would be quite beneficial. Yeah, I am well aware of the election/rescinded penalty, I've never put her on any US tax return. She doesn't even have an ITIN number. Back when the kids were small I used to be able to get around the Married Filing separately with Head of Household and listing her by only putting NRA status in the SS boxes. But when they reached the age of majority I lost the HH status. But still didn't get burnt until I started drawing SS. That was the kicker. I'll see how it goes and then make a decision. Current estimated time for getting an ITIN due to the IRS incompetence, is around 7 weeks which probably translates to 7 months if my interaction with them in the two phone calls last year, totaling 4.5 hours, is any indication. This will be the first time I've not needed to use 2555 since my 1982 tax return as I no longer have any "earned income" at all. Will have to check to see if I can file electronically!![]()
You don’t have to tell me. Filing is painful and tedious, but the stimmy checks help to soften the blow quite a bit.malcontent wrote: ↑Wed, 16 Feb 2022 10:24 amI’m in the midst of doing my US taxes at the moment. I always find that diving into the bowels of the US tax code is “fascinating” in a dystopian sort of way, especially the code that pertains to US citizens and residents living abroad.
On the one hand, it’s hard to believe that someone, somewhere actually came up with all this stuff (US tax dollars hard at work, no doubt). On the other hand, it is nothing short of exasperating to try and comply with it all. I would estimate that almost 100% of those living abroad with US filing obligations have at least something incorrect or are out of compliance in some sort of way.
Over the years I discovered many mistakes that I’ve made… some involved amending past returns, others were just fixed on future returns (thank goodness for the statute of limitations) but I can’t say I really feel guilty about it, because I have always made a good faith effort to be as compliant as possible, in spite of the mountain of cryptic and confusing tax codes. Despite all of this nonsensical filing and compliance, I have yet to pay a single cent in federal taxes all these years. Had I been more compliant, that would not have changed.
However, I have collected a nice 5 figure sum over the years in the form of child tax credits and economic stimulus payments. I don’t feel guilt about that either, because my time spent on complying with taxes is worth more than that! I’ve also not paid a single cent to file my tax, other than a postage stamp each year. I have almost learned to enjoy it in a strange sort of way. Maybe if I owed tax it would be different!
You don't have to tell me, either. In addition to sorting through how earned income exclusions, housing allowances, and IRA contributions worked on a joint return, I had to file bank reports and financial returns for my companies in Singapore, Thailand, Hong Kong, Malaysia, and Australia.Lisafuller wrote: ↑Sun, 20 Feb 2022 11:48 pmYou don’t have to tell me. Filing is painful and tedious...
Yep, you are not alone. I helped my brother do his taxes yesterday and his head almost exploded. It’s no wonder so many Americans overseas want to renounce and be done with it.
Don't forget FINCEN!malcontent wrote: ↑Tue, 22 Feb 2022 9:25 pmI just finished, except for final checks…
1040
1040 schedule 1
1040 schedule b
1040 schedule d
2555
8949 (cap gains/losses)
8606 (backdoor Roth)
Fortunately no pesky foreign tax credits to deal with this year.
I’m still sitting on the fence about the backdoor Roth this year. Based on the proposed changes in the yet-to-be-passed build back better bill, I may have to do a deductible and then make a taxable conversion - from what I can tell, the income and deduction should offset one another, so it seems I can still use the backdoor and then do a little dance.
Interestingly, I will get a $100 refund this year, money that is “leaking” out of my SRS account, because they send the IRS 30% dividend withholding on S27 shares (SPY but traded on SGX). I get a 1099-DIV from UOB, so I can get back that withholding, because 30% only applies to non-US investors.
Yes. I almost forgot that, thanks!
I cannot find if it's mandatory any more, but form 8938 used to be required and was noted on Sch B at the bottom of the page where the three tick boxes are and FINCEN is mentioned (dependent on which tick boxes were ticked yes). It's no longer noted on Sch B but I've been filing it with my return every year including this year (not filed yet but getting there shortly) as the form hasn't been redacted so I would assume it is still necessary. Changed a little bit but I reckon I'll file it anyway because it's virtually the same data that you put on FINCEN. Oh, going with the change to MFJ as what I can gather I can just submit with the W-7 and certified identity docs (the reason I was at the Sg Academy of Law) and mail it using the private mail services like DHL to a special address in Austin, TX (special for ITIN initial applications). If it all works, I'm back to Zero liability and should get a refund on the overpayment of the 2020 return if they ever get their shit together in Philadelphia!!!!malcontent wrote: ↑Wed, 23 Feb 2022 10:41 amYes. I almost forgot that, thanks!
Technically, I am supposed to report my credit cards because they often have a brief credit balance after the annual fee reversal. I can’t make this stuff up — it is crazy town.
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