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Old 04-06-2010, 11:25 AM
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Question Paying foreign taxes - have to file in USA?

I'm a US Citizen, now resident in Denmark; as a result of the DK-US tax agreement, I believe I have to pay Danish taxes and only Danish taxes. I do not have what the US calls Foreign Income, however; I'm a freelance writer and all my income comes from the states. Do I have to file any US tax forms -- and if so, how do I show that I have paid Danish taxes -- since the "Foreign Tax Credit" only concerns income EARNED in foreign countries....

Many thanks in advance -- kageglantz



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Old 11-06-2010, 04:03 PM
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" I'm a freelance writer and all my income comes from the states. Do I have to file any US tax forms -- and if so, how do I show that I have paid Danish taxes -- since the "Foreign Tax Credit" only concerns income EARNED in foreign countries...."---> As an US citizen or a resident alien under either US Tax Code or INS Visa Rules, you are liable for US Taxes( Federal and State, local taxes(if applicable) on both US sourse and world wide income. As you paid your income taxes to the taxing authority, you can get tax credit on your foreign taxes on your US Tax return by fling the FORM #1116.
I guess you can show the IRS copies of your last Danish tax returns, papers or other evidences or etc.
If you're a freelance and get paid as an independent contractor, then it's highly likely that taxes are not being taken out of your pay.then you need to make your quarterly estimated tax payments to both Federal and your State governments as long as you have taxable income.You'll file a form 1040 for your regular job income, and use a schedule C or C-EZ and a schedule SE along with it, and the numbers from the bottom of the schedules will transfer to your 1040 to calculate your total tax. The IRS wants its share of your pay, regardless of your status as a full-time employee or a freelancer.

Please visit the IRS website for further info. onforeign tax credit claim; Instructions for Form 1116 (2009)



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