Mr and Mrs Y file a joint return, no dependents and take the standard deductions. In 2005--each made $80,000. Mr Y spent 335 days of the year living and working for American employer in Bulgaria and the remainder of the year back in Texas. Mrs Y maintained their rented home in Texas. Mr Y is eligible for the foreign income exclusion and Mrs Y is not. What is their 2005 tax bill?
In 2006 same issue, what is their 2006 tax bill? Why is their liability so hugely different?
2007-12-23 12:17:00 · 2 answers · asked by ritae w 1 in Business & Finance ➔ Taxes ➔ United States
Go to irs.gov and type in 2005 in the search box, look at the publications; do the same for 2006.
The foreign earned income exclusion form is form 2555.
The difference between 2005 and 2006 is that in 2005, the income that was excluded was the income for the highest tax brackets. For 2006 (after a tax law change), the income excluded was for the lowest tax brackets.
2007-12-23 12:58:46 · answer #1 · answered by Anonymous · 1⤊ 0⤋
visit IRS website: www.irs.gov or call 1-800-829-1040 or visit your local IRS office.
2007-12-24 21:05:00 · answer #2 · answered by Ms. Angel.. 7 · 0⤊ 0⤋