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Old 04-17-2011, 08:42 PM
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Complicated tax situation

My husband and I temporarily lived (rented) in Virginia but worked in Washington, DC from September 1, 2009 - June 30, 2010. However, we own a home in Georgia where we lived since 2002. Since July 2010, I have collected unemployment from Washington, DC and my husband has worked and payed taxes in Belize, Central America where we currently both live. We maintain permanent residency in Georgia. For 2009, we filed in both Georgia and Virginia but not DC.

In addition to our federal return, which state returns are we required to file? Should we use our Georgia address or Belize address on our returns? Is my husband required to report income earned in another country if he has to pay taxes here?

I know I will need to file and extension and seek professional tax assistance, but we are not sure which states we have to file an extension in?


Last edited by rdjcampbell88 : 04-17-2011 at 09:18 PM. Reason: omission


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Old 04-18-2011, 04:17 AM
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“In addition to our federal return, which state returns are we required to file?”---->I guess for your 2010 tax return, you, as a non-resident of Washington DC, need to file Washington DC return on your income earned in Washington DC between Jan. 1 2010—June 30, 2010; as Washington D.C. has reciprocal income tax agreements with every state. You, as a Non-resident who work at a DC business, can claim exemption from withholding for the DC income tax on your GA return, as a full year resident of GA. As you said, as long as you earned income in VA, you, as a nonresident of VA( UNLESS you passed 183 day SPT test ruel in VA), need to file your VA return and claim the state tax paid to VA( if you paid) on your GA return for 2010.However, as long as you earned no income in VA, then you don’t need to file your VA return UNLESS you are a full year resident of VA, OK??? Your unemployment benefits, on 1099-g, are taxable income for your federal income taxes, although states usually exempt unemployment benefits from state income taxes( iam not sure if Washington DC imposes tax on the state unemeployment benefits). For 2010 only, the first $2,400 in unemployment benefits will be exempt from federal income taxes, due to a provision in the American Recovery and Reinvestment Act. Benefits in excess of this amount are still subject to federal income taxes
“ Should we use our Georgia address or Belize address on our returns?”---->You need to use your current address. If the IRS needs to contact you, that's where they will look first. And if for some reason your driect deposit doesn't go through, that's where they'll send your check. So, use your current address and I guess you May submit a Form 8822 to report your change of address.
Here is a IRS Web link ; http://www.irs.gov/pub/irs-pdf/f8822.pdf
“ Is my husband required to report income earned in another country if he has to pay taxes here?”---> I assume that you are either US citizen or US resident, then you are liable for taxes, federal and state taxes( if applicable) on your WORLD WIDE( your OR YOUR SPOUSE’S earned and unearned income in Belize) and US source income including your unemployment benefits in US. However, you can claim your foreign earned income exclusion(the foreign earned income exclusion and the foreign housing cost amount exclusion are claimed and figured using Form 2555, which must be attached to Form 1040) and foreign taxes( you need to file Form 1116 Foreign Tax Credit to claim the foreign tax credit if you are an individual, estate or trust, and you paid or accrued certain foreign taxes to a foreign country or U.S. possession.) that you paid to the foreign taxing authorities on your US federal return NOT on your US state return. As long you ( or your spouse) keep foreign bank account in Belize, and the aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported, then you need to file Form TD F 90-22.1 with the IRS. The TDF form must be filed when you have at any time during a calendar year more than $10,000 in one or more foreign bank and financial accounts. That means all foreign accounts are combined on any day during the year to determine if the over $10,000 figure is reached. In 2004 the law changed when Congress enacted a $10,000 penalty for “without regard for willfulness” for failing to file the form by the June 30th deadline or not filing it for any year when it was required. There are also even greater monetary penalties and criminal penalties ( jail time) for failing to file the form that the IRS may impose on anyone they catch that has not filed or filed the form late.
Please visit the IRS Websites here; Report of Foreign Bank and Financial Accounts (FBAR)
Foreign Earned Income Exclusion
Foreign Tax Credit



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Old 04-18-2011, 04:32 AM
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“I know I will need to file and extension and seek professional tax assistance, but we are not sure which states we have to file an extension in?”---->REMEMBER: Those who can’t meet the April 18( I guess jube 18 for taxpayers overseas) tax-filing deadline can apply for an extension, but be warned: You will not get any extra time to pay your tax bill if you owe, and the interest begins immediately. I guess you need to visit each state Dept of Rev. for more info;
Virginia]Virginia Department of Taxation Department of Taxation
https://etax.dor.ga.gov/inctax/IndGeneralInfo.aspx
Page Not Found & pay taxes
Overseas Tax Q&A Tax Q&A
Please visit the IRS Website here; Publication]Publication 54 (2010), Tax Guide for U.S. Citizens and Resident Aliens Abroad 54 (2010), Tax Guide for U.S. Citizens and Resident Aliens Abroad



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