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Revision as of 07:02, 22 September 2024
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Leave it to lawyers and the us govenment to be unable to give a straight answer to this mystery! Unfortunately, in order to be allowed wipe out a tax debt, the numbers of five criteria that must be satisfied.
Julie's total exclusion is $94,079. American expat tax return she also gets to claim a personal exemption ($3,650) and standard deduction ($5,700). Thus, her taxable income is negative. She owes no U.S. income tax.
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I then asked her to bring all the documents, past and present, regarding her finances sent by banks, and such. After another check which lasted for nearly half an hour I reported that she was currently receiving a pension from her late husband's employer which the taxman already knew about but she had failed to report that income in their own tax version. She agreed.
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