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Old 01-31-2014, 01:48 PM
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How to file (U.S. income abroad)

Let me start off with a bit of my background:

I am a citizen of Poland (born and raised) but have never been employed there. I graduated from a U.S. university in May of 2012 and a month later began working for my current (U.S. – based) employer. After a year, my work authorization expired (F-1 visa, OPT), so I had to physically move back home, but am still working for the same company (waiting for an EB2 visa). There was a brief break in service of about two weeks between the end of my OPT and the day I resumed work upon arriving in Poland.
I am single, have no dependents, and no other sources of income (no retirement funds, investment accounts etc.).

Here are some of my questions:

1. In 2012, I only worked in the U.S. and filed a tax return there in the spring of 2013. Should I have paid any taxes in Poland for my 2012 income? If it helps, I was only there for less than two weeks in 2012.
2. For 2013, I received both a W-2 and a 1099 from my employer. Should I file a tax return in the U.S. for the second half of 2013, when I only worked and lived in Poland? The salary and a year-end bonus were not taxed in the U.S. (I was in Poland for exactly 180 days in 2013)
3. During the past several months I have transferred some money from my U.S. to my Polish bank account – mainly for day-to-day expenses. Should those funds be recognized in my tax return?

Any help would be greatly appreciated. Also, please let me know if there is any other information I can provide to help you answer my questions.



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Old 01-31-2014, 03:04 PM
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Originally Posted by domp View Post
1. In 2012, I only worked in the U.S. and filed a tax return there in the spring of 2013. Should I have paid any taxes in Poland for my 2012 income? If it helps, I was only there for less than two weeks in 2012.
2. For 2013, I received both a W-2 and a 1099 from my employer. Should I file a tax return in the U.S. for the second half of 2013, when I only worked and lived in Poland? The salary and a year-end bonus were not taxed in the U.S. (I was in Poland for exactly 180 days in 2013)
3. During the past several months I have transferred some money from my U.S. to my Polish bank account – mainly for day-to-day expenses. Should those funds be recognized in my tax return?
#1;You need to contact a Polish tax pro that specializes in intl. taxation.I guess you may claim taxes that you paid to US on your Polish return. you filed yur US return, I guess 1040NR/1040NR-EZ as a nonresident lien with the IRS and your state.



#2; You ,as a Non US resident, need to pay tax on your W2/1099 income that you earned in US; however, as you were not a US resident for tax purposes, you do not need to report your income that you earned in Poland(if you earned). You were not subject to FICA taxes on your W2 income as you were a F1visa holder living in US less than 5 years.


#3;No UNLESS those funds are taxable funds to the US. You do not even need to pay ant interest income that you earned on your funds in US banks. Simple bank interest and interest on CD's are not considered earned income for non-resident aliens, and therefore are not reportable. Your bank generally reports this interest on Form 1099 and you should retain this form for your records, but not mail it with your tax filing. If you file taxes as a US "resident alien for tax purposes, bank interest is taxable income.



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Old 01-31-2014, 04:31 PM
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Originally Posted by Wnhough View Post
#2; You ,as a Non US resident, need to pay tax on your W2/1099 income that you earned in US; however, as you were not a US resident for tax purposes, you do not need to report your income that you earned in Poland(if you earned). You were not subject to FICA taxes on your W2 income as you were a F1visa holder living in US less than 5 years.
Thank you for your response; however, upon doing a little research I think that I actually was a U.S. resident for tax purposes since I pass the substantial presence test, i.e., I was physically present in the States for more than 31 days in 2013 and more than 183 days in the 2011-2013 3-year period. Is my interpretation correct? I'm not 100% sure if the test applies to me if I was in the U.S. on an F-1 visa.



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Old 01-31-2014, 04:41 PM
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; however, upon doing a little research I think that I actually was a U.S. resident for tax purposes since I pass the substantial presence test, i.e., I was physically... =>>> I do not think so ; as yiu said, your visa was F1 as an intl student, then SPT is NOT for you for five years since you are a F1/J1/Q1visa holder.



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Old 02-03-2014, 09:20 AM
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Originally Posted by Wnhough View Post
I do not think so ; as yiu said, your visa was F1 as an intl student, then SPT is NOT for you for five years since you are a F1/J1/Q1visa holder.
I've held two F-1 visas (undergrad + masters) for a total of five years, so I guess I'm not exempt from the SPT. Just wanted to find out if I have to file the 1099-misc for the second half of 2013 if I lived and worked from Poland.

Also, do you know if I will be able to deduct any business expenses incurred in Poland (internet, phone bills etc.) while working for a U.S. employer?

Finally, I did not have U.S. health insurance in the second half of 2013. Can I get penalized for that?



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Old 02-03-2014, 11:56 AM
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Originally Posted by domp View Post


#1;I've held two F-1 visas (undergrad + masters) for a total of five years, so I guess I'm not exempt from the SPT. Just wanted to find out if I have to file the 1099-misc for the second half of 2013 if I lived and worked from Poland.

#2;Also, do you know if I will be able to deduct any business expenses incurred in Poland (internet, phone bills etc.) while working for a U.S. employer?

#3;Finally, I did not have U.S. health insurance in the second half of 2013. Can I get penalized for that?

#1; as mentioned previously, any part of or fewer calendar years, u are exempt from the SPT and automatically a non--US resident for tax purposes.However, if you can claim yourself as being a US resident for tax purposes, then you need to report your US source and world wide income that you earned in poland to the IRS/ your state.
I guess yoiu do not get a 1099 from a Polish ER. If you reciev 1099 from US ER, then you may need to pay quarterly estimated taxes to IRS and state aslong as you are filing as a sole proprietor and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1K or more when you file your return.HOWEVER,You do not have to pay estimated tax for the current year if you had no tax liability for the prior year 2012 i mean and You were a U.S. citizen or resident for the whole year andYour prior tax year covered a 12 month period.


#2; I guess you can dedcut your biz related expenses incurred in poland while working for your ER in US on your Polish tax return; you can not directly dedcut them on your US return, but you can claim foreign tax credit by filoing form 1116 on Sch A of 1040 or 1040 line 47 to claim your tax(es) paid to Poland on your US return.



#3;I guess it ids not for a US resident for yax purposes;Starting in 2014 all U.S. citizens and legal residents, green card holders, will have to have health insurance, or what is known as qualifying health coverage, which includes coverage through your job, a government plan (such as Medicaid, Medicare, VA, and the Armed Services), or a health plan you have purchased on your own.

If you don’t have health insurance, you will pay a tax penalty that will be phased in starting in 2014 with a fine of $95. In 2015, the penalty will increase to $325, and in 2016 to $695 or a percentage of your taxable income. After 2016, your penalty will be increased every year according to the changes in the cost of living.
You may be eligible for an exemption or you may be able to get help paying for health insurance it if your income is low.Exemptions will be granted for the following:

you have a financial hardship ;you have a genuine religious objection ;you are an American Indians
you have been without health coverage for less than three months ;you are an undocumented immigrant
you are in prison
the lowest cost health plan available in your area exceeds 8% of your income .
you can contact for sure by calling at (800) 453-8648 or e-mail to [email protected].



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