Hey all!
one quickie for you guys....
I've just moved to the US in october and transferred my savings (under 10k) from my foreign bank to an account in the us. I will start my job and having an income in the US in jan 2007. My question is, do I have to file any tax returns or other stuff in april 2007 regarding my savings transfer from bank to bank this year?
Thanks, happy holidays!!!!
2006-12-22 14:47:48 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Forgot to mention, that my savings account earns very little interest each month (about a dollar), do i pay taxes for that???
2006-12-22 14:52:49 · update #1
At the very least you will have to complete Schedule B (Part III) and attach it to your tax return. I have attached a link to the form and the instructions. If you meet the exceptions, you do not need to file the additional form. If you must file the Form TD F 90-22.1, you should do so by June 30th 2007 - remember this form goes to the Treasury Department, not the IRS. If you do not file it when required, the fine is $10,000.
Did you come here on a K-1 or K-3 visa? If so, you should get to a CPA and make sure your personal tax return is correctly completed, especially if you intend to apply for citizenship in due course. There is a nasty little question in the citizenship application which could trip you up if you are not careful.
2006-12-23 00:34:10 · answer #1 · answered by skip 6 · 0⤊ 0⤋
Transferring your savings, regardless of the amount, is a non-event for tax purposes. Unless your earned at least $5000 in the US in 2006 (the actual amount is larger, but that's close enough for this question), you are not required to file a federal income tax return and do not owe income tax. State laws vary, but I doubt your interest would be enough to trigger filing at the state level.
This answer assumes you are not a US citizen. The US taxes world wide income of US citizens.
2006-12-22 23:24:48 · answer #2 · answered by STEVEN F 7 · 0⤊ 0⤋
No because you did not live in the US for the year 2006. Our tax season goes from January 1 to December 31 for personal income taxes. You will receive a statement next year (usually sometime in December) from your bank and that will show how much interest your money earned for 2007 assuming you have your taxes done (you'd be crazy not to in this country) take the statement to your tax preparer and they can tell you if you have to pay taxes on the interest your money earned. This also covers the question you added.Good luck, Happy Holidays and Welcome!
2006-12-22 15:02:23 · answer #3 · answered by tpbthigb 4 · 0⤊ 1⤋
You do not have to pay any taxes whatsoever on your savings account because it was not earned income. That money was an asset that you already had.
As far as your savings account, you will probably not have to pay a tax on it, but it greatly depends on every situation. The interest earned is taxable, but whether it will be taxed depends on whether you have to file, how much you earned, and other things. The Internal Revenue Service publishes a publication called Pub 17 that can explain everything better. The address for that is http://www.irs.gov/pub/irs-pdf/p17.pdf
2006-12-22 15:01:02 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Just include the interest income for the year on your 2006 income tax return. It doesn't amount to anything anyway and you will feel sooooo much better.
The principal is nontaxable even though you changed countries.
2006-12-23 01:20:51 · answer #5 · answered by woodluvto 2 · 0⤊ 0⤋
i wouldnt think so, but then again, our irs is greedy. the only thing i can think of is that if your savings is worth more here than there. call a local tax office and ask them. better safe than sorry.
Merry Christmas and welcome to the USA.
2006-12-22 14:53:34 · answer #6 · answered by tajura001 3 · 0⤊ 0⤋
No. You only need to report the interest you receive on the account.
2006-12-22 14:56:44 · answer #7 · answered by Anonymous · 0⤊ 2⤋