Larry's 2012 Tax Guide For U.S. Expats & Green Card Holders - In User-Friendly English!. Laurence E. 'Larry'

Чтение книги онлайн.

СКАЧАТЬ do you read next? Well, friends, simply go back a page or two and look at that 'annotated' table of contents. See which essays (and that is what I've essentially written - essays about certain areas which I believe are applicable to you, the overseas American tax filer) interest you. Read them! No, you do not have to read the whole shebang - read ONLY what interests you. If it doesn't interest you and you're reading late at night, then read that which does not interest you - it just might serve as a wonderful, holistic sleeping pill (especially the IRS instructions to those forms included within the appendix!).

      Yeah, there are some sections that are repetitions of sections included last year. But no, these are not repeats, per se - for those few sections, there are some pretty decent re-writes contained within!!! If you are a 'new' reader to my writings and have not seen the 2011 edition, you might consider purchasing it, as well - it's affordable and contains information quite complementary to this edition!

      In ending the introduction to that 2011 edition, I wrote about Form 8938, introduced on the sly by the IRS during Thanksgiving week, when it would be least likely to attract any attention. This year, that form, the 8938, is now revised, error-free, with its own separate set of instructions and is prominently featured in this edition with its very own, spine tingling essay, contained herein.......just enough to make you choke, without having swallowed a turkey bone!

      It is the week before Thanksgiving as I write this intro and it is on Christmas Eve, 2011 that I review and do my edit. I'll end this introduction with something else brand spanking new that should give you cause for concern. It comes from Merrill Lynch, that brokerage house/investment bank that helped drive America to the verge of bankruptcy because of its greedy acts involving those lousy sub-prime mortgages.

      Read the following, my friends. This was issued by Merrill Lynch this past week:

      NOTICE TO ALL NON-U.S. INDIVIDUAL CLIENTS AND U.S. CITIZENS RESIDING ABROAD

      “Certain U.S.-situs assets held within your account with Merrill Lynch may be subject to U.S. estate taxes in the event of your death. To ensure any U.S. estate tax liabilities are satisfied, U.S. law imposes a lien on all your assets held with Merrill Lynch at your death. As a result of this lien and the potential liability of Merrill Lynch for any unsatisfied U.S. estate tax, all of the assets in your account(s) with Merrill Lynch at your death will be restricted from withdrawal or transfer until (i) Merrill Lynch concludes that an exception applies based on an affidavit confirming your total U.S. assets held at death, your country of citizenship, and your country of permanent residence; (ii) Merrill Lynch receives documentation satisfactory to Merrill Lynch confirming that your assets are subject to a probate proceeding within the U.S.; or (iii) a release from the U.S. Internal Revenue Service (IRS), known as a 'Federal Transfer Certificate,' is provided to Merrill Lynch (obtaining this from the IRS can take up to a year or more). As Merrill Lynch does not provide tax advice, please seek guidance on this topic from your own legal or tax advisor.”

      Guess what, dear readers: Merrill Lynch is not alone - all banks, brokerages and realty companies are starting to send out this notification. If you reside outside of the U.S. but have assets in the U.S., it is time to look at exactly how up-to-date your estate planning really is. True, we do not plan to die but sometimes we do and without some 'basic' planning, we are simply going to make life unbearable for our heirs......especially if one is a Non-Resident Alien with assets in the U.S. That NRA does not have the $US5 million exemption in 2011 or 2012: the NRA exemption is far lower - $US60,000.

      It is for this reason that this year's edition includes a section devoted to gifts and the tax returns that go with giving – and receiving.

      Read on.....enjoy.....and if you have any questions, email me at [email protected]. I don't guarantee that I'll answer you immediately, but I will definitely reply!!!

      The final tax acts of 2011

      ... tax changes we need to know in 2012…. On 23 December, 2011, the House of Representatives, Republican controlled, rather than be blamed for a possible economic sink hole that would cost the Republicans the 2012 elections, agreed to the Senate passed legislation that will impact you, the expat, ONLY if you are earning wages from which social security tax is being deducted – read on to find out what you have for 2011 and 2012 but is subject to end, 31 December 2012…..

      Those Tea Party members of the House of Representatives did not get their way on 23 December 2011, as House Speaker John Boehner agreed to the Senate’s two month extension for social security payroll tax cuts, prior to recessing for the holidays. This will mean absolutely nothing to you if your wages overseas are not subject to social security tax deductions. If you are back in the USA, employed and making $50,000 per year, then the extension on payroll tax deductions from your gross salary will mean approximately $US1,000 more in your pocket. This is substantial, for many. Domestic wage earners in a country where the median family generates $US55,000 per year income. For those of you who aren’t aware of it, there is currently a reduction of social security payroll tax deductions from 6.2 percent to 4.2 percent to stimulate both individual and business spending. It is estimated that extending this cut will cost the government $US300 billion in revenue during 2012.

      That two month extension will be extended throughout 2012 – for practical purposes, while some elected officials will bitch and moan about what it is costing the country, no one wants to campaign in November, 2012, with the stigma of having opposed keeping the consumer/tax payer flush with in order to increase tax revenue.

      And for that matter, those Bush tax cuts that are due to expire at the end of 2012 will also be made permanent before the November elections – for that same exact reason. Right now, both parties agree to keep this for 98 percent of the tax paying population. It is that group of 2 percenters, those with income of $200,000 or more, that is the bone of contention and I’d bet my bottom dollar that this issue carries over to be one of the main campaign issues confronting the voters in November. Combining those Bush tax cuts with Obama’s payroll tax cuts means approximately $US2,700 in tax savings to the median income family. How do you think your Congressman/woman will eventually vote?

      Oh, and that $US5 million gift tax exemption is set to expire on 31 December 2012, as well.

      That, in essence, is it – no major changes to contend with now – don’t we have enough to handle with both FATCA and the new Form 8938?……but wait until next year!!!

      What is income

      ... at least what the IRS considers income and which categories you fall under, having to classify your income. For all intents and purposes, this is a good ‘executive summary’ of wht the U.S. tax system is like. Other than some numerical updates, in fact, nothing has been changed in this section – after all, if it works, then why ‘tamper’ with it???

      Why is this in bold face? Well, dear reader, this is important enough to be placed in boldface! FIRST: GO TO THE IRS WEBSITE: www.irs.gov ! There’s an awful lot that you will find in the IRS site - some say that there’s too much and thus too difficult to navigate.

      Nonetheless, give it a try!!!!!!!!!

      Anyhow, now that you’ve been thoroughly confused, here’s what you really need. Yes, sir, folks, here it is, the list of what you have to declare as taxable income - at least, according to the IRS, almost (but not quite) using their very own words:

      •All wages, salaries and tips, no matter where from

      •Taxable СКАЧАТЬ