US Income Taxes

I would like to extend a heartfelt invitation to anyone who would like to pay my US Income Taxes for this rapidly ending year. Good grief, I wonder where the good ole USA stands in relation to other countries on the amount of income taxes levied against the serfs?

Can't help you with your taxes as I will be paying my own tax bill in about 2 months after I get all the required paperwork from all the different sources and file my return. As for how the U.S. stands in relation to other countries, I think you will find that some of our European friends pay much more in overall taxes then we pay in the U.S., not saying we pay to little though.

In the UK income tax is payable on all incomes and pensions regardless of what country the person lives in. The amount varies between 20% or 50% depending how rich one is.

You can always get change country, Swedish tax is the highest in the world and have **** back from the gowerment when you try to use the healtinshurance!

My total tax bill came out to 7.2% on last year's earnings. I paid no sales taxes (in the US) nor any state taxes. I'm not complaining after hearing stories from my Swedish friends.

parrot wrote:My total tax bill came out to 7.2% on last year's earnings. I paid no sales taxes (in the US) nor any state taxes. I'm not complaining after hearing stories from my Swedish friends.

Yeah, I should be so lucky for this year. I cashed out some savings to build my house now in its ninth month of construction. Had I known this, I could have split my withdrawal over a few years. Don’t suppose there is any way to deduct house built here is there? Downloaded Turbo Tax but see no exclusion.

Tracechain wrote:

parrot wrote:My total tax bill came out to 7.2% on last year's earnings. I paid no sales taxes (in the US) nor any state taxes. I'm not complaining after hearing stories from my Swedish friends.

Yeah, I should be so lucky for this year. I cashed out some savings to build my house now in its ninth month of construction. Had I known this, I could have split my withdrawal over a few years. Don’t suppose there is any way to deduct house built here is there? Downloaded Turbo Tax but see no exclusion.

You might check to see if it qualifies as a second "vacation" home, but not really sure there is still that exemption.

Only property in the US gets any exemptions for US taxes, although income from any source anywhere is taxable, although the first $87,000+ of foreign income is exempt.

We US expats have a very low tax burden compared with our European expat friends.

Oh, and don't forget the requirement to report any foreign accounts if your foreign assets exceeded $10,000 at any time during the year.

by Tracechain » December 29, 2011, 3:41 am

Had I known this, I could have split my withdrawal over a few years. Don’t suppose there is any way to deduct house built here is there?

I am confused. How would split withdrawals have changed your taxes, in Thailand or in the States?

Ray, I think Trace is referring to the possibility of him deferring the taking of taxable withdrawals from his retirement account to pay for his house here. If he took some of the money in 2011 and some in 2012, perhaps he could have been in a lower tax bracket or at least deferred payment on withdrawal into the next year.

If this house could be properly classified as a rental house, not primary home, then there could possibly be deductions.

The IRS is getting serious on the reporting of foreign bank account. Big Brother now has the Thai banks and most all other countrys reporting US citizen bank information to the IRS. Penalties for not reporting of the foreign bank accounts are quite high. $10,000 for EACH account not reported.

Regarding the foreign earned income limitation, for 2011 the exclusion amount is $92,900.