Do I have to file a federal and state tax form if I worked and lived outside the U.S. for 2006 tax year?

Question

I have a cultural exchange visa with ecuador (12 VIII) but have earned money to pay for living expenses and other basic needs. Is there a minimum amount earned which would obligate me to file tax forms?

Answer 1

US citizens and resident aliens are taxed on their world-wide income, regardless of where it is earned. The standard amounts apply for filing tax returns as for all taxpayers -- $8,450 for a single filer, etc.

You may be able to exclude all or part of your foreign earned income from US tax if you file a timely return. Alternatively you may claim a credit for foreign income taxes paid on that income.

See IRS Pub 54 for more information: http://www.irs.gov/publications/p54/index.html

Most states have similar requirements. You'll have to contact your state's tax authority for guidance.