Frequently
Asked Questions
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I
am a U.S. citizen but had little income, must I
file a return?
In general, ALL US citizens (and green card holders)
living and working abroad are required by law to file
an annual US tax return, irregardless of whether or
not they owe any taxes. If you are supposed to file
and do not, you could be subject to civil penalties
or criminal prosecution under U.S. federal law.
If you would be required to file if you were living
in the US, then you are required to file while living
overseas. If your income is below the amounts listed
in the chart below, you are not required to file.
See the amounts listed below to determine if you have
a filing requirement for tax year 2007: |
| IF your filing status is... |
AND at the end of 2006 you were... |
THEN file a return if your gross
income was at least... |
| single |
under 65 |
$8,750 |
| 65 or older |
$10,050 |
| married filing jointly |
under 65 (both spouses) |
$17,500 |
| 65 or older (one spouse) |
$18,550 |
| 5 or older (both spouses) |
$19,600 |
| married filing separately |
any age |
$3,400 |
| head of household |
under 65 |
$11,250 |
| 65 or older |
$12,550 |
| qualifying widow(er) with dependent
child |
under 65 |
$14,100 |
| 65 or older |
$15,150 |
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When
is my 2007 tax return required to be filed?
- U.S. citizens and resident aliens residing in
the U.S.A. - April 15, 2008
- U.S. citizens residing outside the United States
on April 15th - June 16, 2008
(no special extension required)
- Non-resident alien with U.S. wage income - April
15, 2008
- Non-resident alien with no U.S. wage income -
June 16, 2008
Extensions of time to file can be requested by filing
the proper extension request form.
***Filing an extension of time to file is not an
extension of time to pay. The IRS must receive your
payment of any taxes due by April 15, 2008. If payment
is received after this date, penalties and interest
will be applied.***
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Can
I pay my taxes in other than American dollars?
No.
Tax payments must be made in U.S. currency, using
a check or money order. German banks will issue
bank checks in U.S. dollar denominations. Or you
can pay online (for a fee) with either www.officialpayments.com or www.pay1040.com
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I
am a U.S. citizen living overseas with no U.S. income
but substantial foreign income. Must I file a U.S.
tax return?
Yes. U.S. citizens must report their worldwide income on their U.S. tax
returns. If you paid income taxes to a foreign country, you may qualify
for a foreign tax credit. You may also qualify for a foreign earned income
exclusion of up to $85,700 for 2007 (lower for previous years).
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I
am self employed. My net income is lower than the
filing requirement. Does this mean I don't have to
file a return?
For self employed persons, you must file a return if your GROSS income
is at least as much as the filing requirement. This is not the NET income
you arrive at once you have deducted all allowable expenses. Also, your
income may be subject to U.S. social security taxes, depending on the
Social Security Agreement the U.S. and your country of residence may
have.
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Do
I need to report money I have in a foreign bank or
financial account?
Since you are required to report your worldwide income, whatever the
source on your US income tax return. So if, for example, you earn interest
or dividends from a foreign account, this must be reported with the rest
of your income. In addition, if your overseas account balance is over
$10,000 you are required to report the account(s) on a special form to
the US Treasury.
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