I just got a tax document from my employer. When do I do taxes in HK and when do I do it for the USA?
And for USA....is there a certain amount where if I made under that amount- then I don't have to do it?
I just got a tax document from my employer. When do I do taxes in HK and when do I do it for the USA?
And for USA....is there a certain amount where if I made under that amount- then I don't have to do it?
HK Tax declaration is NOW. Have you worked here over a year??? Have you rec'd the Green Envelope from IRD (HK)????
Hk tax due one month after they send u the form.
USA tax due 6/15
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I didnt get the green evenlope yet.
HK- katherine, I have to fill in what form? The green envelope one? And...fill in the form within a month but pay next Jan/April? How do they know if I fill it in within 1 month or 3 months etc?
USA taxes are due on April 15 but those overseas are given automatic extension until June 15. They can apply for extension upto October 15 if they file correct form.
However the tax due is paid on April 15.
There is an exclusion of certain income for people overseas IF you meet the requirements of a certain test and ONLY if you actually file a return. Basically the exclusion will result in you owing zero US taxes, but you don't get the exclusion unless you go through the paperwork exercise of filing. If you don't file, you don't get the exclusion and could very likely end up with a US tax bill.
Also note FBAR is due at end of June regardless of tax filing extension date.
Last edited by penguinsix; 22-05-2014 at 05:53 AM.
Is that a trick question? How do you think they know? They know when they send the form out and they know when they receive it back from you.. and folks in HK are fairly good at maths. If you are late you get a fine. If you have not had your tax return form you better ask - getting lost in the post is not an excuse.
It's an old adage "if you don't owe, you don't have to file" and many people overseas, because of the exclusion you mentioned, end up in this situation and think "I don't have to file". However, the regulations are a bit more complex due to two provisions: minimum filing requirements and foreign income exclusion filing requirement.
First, US citizens are REQUIRED to file if they make more than a certain amount, which currently for a single person is about $10,000 USD. If you make more than $10K USD, you have to file, regardless of whether you owe or not.
http://www.irs.gov/publications/p554/ch01.html
Persons who live overseas and meet either the physical presence or bona fide residence test can exclude foreign income of $97,600, which often results in them owing -$0- in US taxes. However, and this is the second bit, you don't get that exclusion UNLESS you file the return. You can't just say "I made under $97,600 so I don't have to file". To get that exclusion, you have to file and prove it. Otherwise, the exclusion is LOST and when the IRS comes back you'll have to pay taxes on that income.
I've met dozens of expats who have the thinking "I'm under the $97k" ceiling and don't file, only to discover later when they do end up filing (i.e. to catch up on their records, to prove income for immigration of spouses, or to get mortgages or loans later in life) that they are in a bit of a pickle for failure to properly file while overseas.
My advice to the OP is if this is your first time filing from overseas consider a professional US-expat tax service for some advice. You can do the forms yourself and have them give it a review (cheaper than having them do it) but it will help having it professional done at least once while overseas so you'll know how to proceed in the future.
Good luck.
Last edited by penguinsix; 22-05-2014 at 10:12 AM.