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Q: Filing American taxes (federal) from China by mail
<p><p>So I have decided to file my taxes by mail this year because filing online is not an option (don't ask). Anyway I heard that if I make under US$99,200 then I shouldn't have to pay any tax (correct me if I'm wrong). What I know so far is to mail the 2555EZ form and the 1040 form. I have no W-2s. I'm fairly young and have never filled out these tax forms before and it's quite overwhelming. My basic info is I'm single, have been in China for the whole tax year in 2014, all my income came from a Chinese company in China, no debts, student loans, and just using my parents' home in America as my residence. There are no special circumstances to consider (military, charitable donations, etc). I was hoping some people with more experience could just point out how to fill out the forms to show that I owe zero tax, or if I am missing any other forms. Taxes suck.&nbsp;</p></p>
You'll need forms 1040, 2555, and 1116. 1116 is the foreign tax credit form. Don't forget that one! Download them from irs.gov(pdf) and they're fillable. You can just type in your info and print. I sent mine via trackable China Post for 21RMB. They say it takes 2-4 weeks to arrive. You get an automatic 2 month extension living abroad.
hi2u:
<p>Thanks. I saw the 1116 form, but to clarify, is there any use in getting foreign tax credit if my income is under $99,200? Since I'm not getting taxed on my income by America anyway (not paying anything to America this time around). Ya I'm not sure if I completely understand the concept of tax credit. Is it used to justify not paying taxes or used to lower the amount of taxes I should pay?&nbsp;</p>
ironman510:
Just an add on, go to your bank that your salary goes to and print out all of the company deposit records that proves how much you're getting paid. I'll try to get a video uploaded for helping out on how to fill out forms
I haven't talked to the IRS in maybe 30 years (I'm 52). If I try to talk to them in the future are they going to be pissed? I'm a US citizen. Spent a lot of my life outside of USA. Never earned a lot of $.
dongbeiren:
If you haven't been filing but don't owe anything they shouldn't care.
ironman510:
If you come clean they'll make you a deal where you'd file this year and file for the last 3 years prior to this year. After that you're all good but you can't make the same mistake twice. This a one time offer.
not filing isn't as bad as not reporting, but not filing is not reporting income, and they would rather go after average joes because average joes are a lot less likely to have good lawyers--from a retired IRS agent.
Don't forget the FBAR, either.
That said, I'm the only foreigner here I know of that actually files every year
ironman510:
Mmm maybe it's time we made a Youku or YouTube video on how to fill out forms and post a link here? What do you think?
I file in Hong Kong and if you have over 10,000 USD in your account File my American brothers from another mother, I'm not joking because you'd better be filing, once your account hits $10k you're in the Beijing IRS computer automatically, how? Of course your passport number and didn't you remember that your SSN number was filled in when you applied for your passport, I got the info on them from the U.S embassy website Where you can file your taxes.. A lot of young workers here I've met really want to file taxes but they can't understand the forms and its a tax language that isn't easy to understand.
ironman510:
It wouldn't matter if you had $1000 in ten different Chinese banks because it's still under your passport number that's linked to your SSN, the Beijing IRS office still has everything on file under a passport number that red flags it. No matter what try to file or go to your city's classified website and go to the job ads and post a one time job for Y500 and coffee for teaching you how to fill and file taxes. I've taught some guys for Y300 in Shenzhen.
dongbeiren:
I always file when in China, good advice. Have used an accountant in the US in the past. I don't keep more than 10 grand as I transfer my savings to my better half who is not a citizen.
ironman510:
Same as me, haha I let it stay with my Chinese wife sit in the Shanghai Index in a special account and the interest is our vacation money
dongbeiren:
Nice haha, I'm getting paranoid now that at some time last year my combined accounts went slightly over 10 grand. Oh well, I'm a very small fish and do file my taxes so I'm guessing the IRS will probably leave me alone. On another note, you seem pretty knowledgeable on these matters so let me shoot this one to you - I'm going to try to file myself this year I think. My parents' accountant really gouged me last year on what should have been a simple return. My return is more complicated than most actually - my income is under the foreign exclusion but I have some investments in an online account that produce dividends - not a lot of cash but some of them are foreign etfs so it's a pain in the ass. I'm guessing downloading turbotax and hooking that up with my scottrade account would more or less take care of those calculations automatically. Again, the numbers are pretty small - maybe a couple thousand a year in income, no capital gains unfortunately. Do you think this will be simple enough to file or should I just go to H and R Block in the states?
ironman510:
As long as the entire income amount doesnt go over $99K amount than you should file all together and yes coming up with those calculations would take some time.. If you're looking for a short cut use the guys I posted below, I've used them for 5 years now. They can prepare all that stuff for you. Just email them all the amounts and stuff like that.
Hong Kong Tax office: +852 3167 4579 (HK1300 for filing and HK800 if you have over $10,000 USD.)
Shanghai: Tax office: +86-21-52135116 ( Same prices above but in RMB.)
These guys are from the U.S Embassy recommendation tax helpers. If you are late and or haven't filed in years they can help you fix all that and help you answer those sneaky questions that you wish you could ask an IRS agent.
USA, I do not know..... but my Canada taxes I have given up on.....I send them a signed piece of paper with the year and my signature on it and let them do it..... they do anyways, always, telling me I am wrong, 10 months later.
