Quote:
Originally posted by zenmaster10665
I have one!!
As a US Citizen who is working overseas in Austria through my own UK Limited Corporation...am i required to fill out US income taxes?? I know that the UK has double taxation agreements with the UK, therefore I know that there are laws pertaining to this, however, I am not sure what exactly I need to do! 
(Sorry if it was a tough one) 
|
A qualifying individual who works abroad may elect to exclude from gross income $80,000 of foreign earned income (for 2003) attributable to the period of residence by the individual during the tax year in a foreign country (Code Sections 911 (a)(1) and (b)(2)).
Foreign earned income includes wages, salaries, professional fees, and other amounts received as compensation for personal services actually rendered when the taxpayer's home was located in a foreign country and the taxpayer met either the bona fide residence or physical presence test (Code Sections 911(b)(1) and (d)(2); Reg. 1.911-3). If the taxpayer engages in a trade or business where both personal services and capital are material income-producing factors, no more than 30% of the taxpayers share of the profits can be treated as earned income.
So, basically, you need to be living there for most of the year. If you're not there all year , you get to exlude a portion of the $80,000 earned income, but not all.
Also, unearned income (interest, dividends, etc.) do not fall into this category.
Also:
A qualified individual must make a separate election with respect to the foreign earned income exclusion. The elections are made by filing form 2555 with the taxpayer's timely-filed income tax return (including extensions), amended return, or a late-filed return if filed within one year after the due date for the first year for which the election is to be effective. Once made, an election will remain in effect for the tax year in question and all subsequent years unless revoked with approval from the IRS.
Generally, a taxpayer must file Form 1040 by April 15th of the following year. However, an automatic two-month extension will be granted to qualifying US citizens or residents if on the normal due date his or her tax home and abode, in a real and substantial sense, are outside of the US and Peurto Rico. The automatic extension also applies to the payment of tax but interest will be charged from the original due date.
Also, check with an Austrian tax professional - they might be more "with it" on international taxation than I am! Don't see it very often.