My wife is a US citizen but she never paid taxes before because in the 1st country she worked at they deducted 40% taxes from her for 4 years, so she was informed that she doesn't need to file her US taxes... then now we are in a tax free country, and out of habit she didn't file her taxes for ONE year.
What exactly should she do? She should file the whole 5 years? Or only the last year? And what are the documents needed? We cannot find a tax professional here to ask him/her, and the IRS website doesn't contain much info about this subject.
2006-12-12 19:01:50 · 1 answers · asked by Psychotron 2 in Business & Finance ➔ Taxes ➔ Other - Taxes
As a U.S. citizen she must file a tax return each year. For the 4 years where she paid taxes in the foreign country she would get a credit against the U.S, taxes for taxes paid to the foreign country.
For the year where she didn't pay taxes to a foreign country she could have elected the foreign income exclusion. This is an election to exclude up to about $80,000 from being taxed in the U.S, You would have to file to make this election.
2006-12-12 21:55:56 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋