Does a US citizen living abroad liable for taxes in US ?

Question

Hi,
I am a Naturalized US Citizen planning on living abroad in my home coury for few years to be with my sick parents but not going to work there. During those years I will have no income except couple of thousand dollars in interest on my savings in US bank.

(1 ) Do I have to still file for IT returns in US ?

(2) Am I liable for taxes on the interest earned in US bank ?

(3) Is there a Yahoo or Google or other group where attorneys or accountants can give me proper legal advice on these & other related matters ?

Really appreciate any & all the help.

Thank You in Advance.

Answer 1

US citizens and residents are subject to US income taxes on their worldwide income regardless of where they live.

If your income is less than the filing requirement amount for your filing status, no return is required. If you are a single individual the filing requirement amount for 2007 will be $8,750. If your total income including the interest income is less than that, you will not owe any tax and do not have to file a return.

You may still owe state income taxes in your state of legal residence and/or the state where the bank account exists. You may also owe income tax to the country where you reside.

Answer 2

(1) No, not for only $2,000 in interest income.

(2) No, not until your income is over the filing requirement for your filing status (currently $8,750 for Single)

(3) No

Generally, if you are not required to file a federal return, you are not required to file any state or local return.

Answer 3

Try this for free advice.

U.S. Citizens and Resident Aliens Abroad

http://www.irs.gov/businesses/small/international/article/0,,id=97324,00.html

Answer 4

Not US tax, but local tax where ever you're at. Sometimes you can get away without paying tax in some third world if you making under the qouta. Good enough, yes?

Answer 5

You will be liable for taxes on money kept in a U.S. bank.....