European Stars And Stripes (Newspaper) - March 6, 1989, Darmstadt, Hesse                                A what Are the most common lax forms used when filing taxes from overseas Are different forms used than slates de. The forms used Are basically the same ones used in the United Stales. Here Are some examples form 1040 Fez if you Are single have no dependents and your taxable income is less than $50,000, you May be Able to use his simple form. You cannot use ins form in you want to itemize deductions claim any. Adjustments of income or claim any tax credits. Also. Your income Musl come Only irom wages salaries and tips and interest income must be $400 or less. Horm 104qa if you do not qualify to use form 104q Fez you May be Able to use form t040a.you May use form 1q40a 1 your income is Only from wages. Salaries lips taxable scholarships and fellowships interest dividends and unemployment compensation your taxable income is less than $50,000 you to not itemize your deductions and your Only deduction is Lor Cei Tain contributions . The Only credit you re allowed to Ako is a credit Lor child and. Dependent care expenses. Form 1040 if you cannot use 1040 Fez or 1040a. Form 1cmo May be used in All cases. Special. Attachments to form 1040 for those overseas May include form 3903f, foreign moving expense form 2555, foreign earned income and form 1116, foreign tax.credit.2 /. Taxes Are due this year an april 17, but military personnel overseas got an automatic two month Extension. Does that mean people who owe taxes get a two month Grace period on paying what they owe military personnel on Active duly outside the United Stales and puerto Rico on april 17, 1989, Are allowed an automatic two month Extension of . Until june 15, if you tile a Point return Only one spouse need qualify Lor. Mis automate Extension to apply. Ii you use this automatic Extension you must attach a statement to your return saying thai you resided outside Theu Nilca states on the due Date of your return you must pay interest on any unpaid Tan trom the original duo Dale to the Day you pay. 4 what types of bonuses paid by the military qualify As taxable income which bonuses or special allowances commonly paid to military personnel Are considered not taxable bonuses that Are taxable include enlistment bonuses re enlistment bonuses and overseas Extension bonuses special pay for such things As foreign duty sea duly proficiency pay responsibility pay hazardous duty pay. Flight duty pay. Aviation " career incentive pay and separation pay also Are taxable. Excluded items that do not have to be reported As. Income include quarters Aso Wanco subsistence allowance Larry by separation allowance and the ii Nilore allowance or gratuity in general taxable amounts will be included on arms w-2 01 1099, a Sorel remember has an extra Job and earns Money either from another . Employer overseas or a German employer does that income qualify under the Loreign earned income exclusion Rule Fust of All in is important to remember that the b Sis tax a financial planning guide United slates taxes its citizens on worldwide income. This Means that All income regardless where in is earned must be reported. It the services member has employment with a firm that is not an Agency of the . Government he must report Ilia income. He can. Also elect to file form 2555, foreign earned income to determine if he qualifies Lor an exclusion. \ various requirements must be met before the income is considered exempt from . Taxation. First1 the income cannot be unearned that is it must come from salaries wages and commissions  to investment income. Second the services for which you Are being reimbursed must be. Performed in a foreign country. Your lax Home Musl also be in foreign country. You must physically be. Present in that country for at least 330 full Days during. A period of 12 consecutive months -. 3 if a military taxpayer buys a Home overseas using tax free monies received As his or her quarters allowance can they Stilt deduct mortgage interest and property taxes paid on the Home from their income tax ii you Are a member of the uniformed services and receive a housing allowance thai you May exclude from income you May nevertheless deduct All of the deductible inheres a on your Home mortgage. The. Interest deduction is an itemized deduction on. Schedule a form 1cmo. F if an american taxpayer s spouse is a nonresident alien can the couple Flea a joint return Wilt that lower the couple s tax Burden can a nonresident alien spouse also be claimed As a dependent ii so How generally the most favourable tax rates Are available to a married couple filing a joint return. In order to file a joint tax return with a nonresident , though certain conditions must Tirol to  nonresident alien spouse must be married to a . Citizen or resident alien a the end of the tax year and both spouses must agree to treat he nonresident alien spouse As a resident alien for tax purposes. Both husband and wife must sign a Sale men of that Milec and attach it to their joint  should include Iho name address and social Security number of each spouse a note of caution. Once the election is made the nonresident alien spouse s worldwide income is  us tax of the nonresident spouse has substantial Loreign income there May be no advantage to making this election if the nonresident alien spouse does Vrtol agree to the joint return the spouse who 15 a  citizen usually will fila married filing separately he or she May Clairj an exemption for the nonresident alien spouse in that person has no income irom sources in the United slates and is not another taxpayer s dependent. The nonresident alien spouse does not have to tile a Federal income tax return he or she had no  source income and does not have to report any income from sources outside the United states As Long As he or she remains a nonresident alien / what is the earned income credit by How much does it lower an individual s tax Burden can american service members overseas qualify for it and what Are the criteria for claiming it 1 the earned income credit is a refundable tax credit a credit of up to $374 is available to taxpayers who have earned income and adjusted Gross income less than $18,576. The majorly p service members overseas will not. Be Able to qualify for this credit because to be eligible you must have a child Irving with you for More than of Tho year and have your principal Home in the United states.-. Being stationed outside of Tho . Even when residing on a . Military facility docs not Quality As living in the United slates.  -.-. Those who May qualify will be service members we moved overseas in the falter Hali of 1983 or those or Are on an unaccompanied tour of duty leaving spots and dependents in the  a can  deduct expenses related loan overseas move during the tax year Are there any limits on How much can be deducted. " moving expenses Are deductible Only As an. Itemized deduction. Only deductible expenses that Are More than reimbursements and allowances May be claimed. When a service member is  new permanent station he or she May deduct cer Laii moving expenses incurred. A permanent change of Slation includes a Moye. From Home to the first duly station a move from one. Permanent Post of duty to another or a move irom to isl Post of duty to the . Within one year of ending Active duty. A foreign move is one irom the United Stales or its. Possessions to a foreign country or Romone foreign country to another or within a Loreign country ii is no a move from a foreign country to the United Stales o its possessions moving expense deductions should be figured on form 3903f, foreign moving expenses from form 3903f, the service member carries the deduction of schedule a form 1040, Doduc lib moving expenses Are subject to certain Dollar limits. The costs of transporting household goods and Raveling not including meals to Tho new residence Are no limited to any. Dollar Amouri. But to  not deduct More than $6,000 for All other moving costs put together. Of this total the co of pre move House Hunting  temporary Liyung expenses together May not exceed $4.500. For married persons tiling separate returns these limits Are $3, and $2,250 respectively if both spouses live together and Bolh begin work in the be location. 9i1 due to the Low value of the Dollar military men and women and . Government employee overseas often receive extra pay known As coat of living or Post allowances i s that income " taxable differentials such As Cost of living or Post allowances Are non taxable. These amounts will hot appear on form w 2. I of has the Standard deduction gone up this year by How much does thai mean it is probably not Worth the average taxpayer s while to itemize deductions this year even if they did t last year the Standard deduction which is or taxpayers w do Noi itemize deductions on schedule a of form 1040, is higher for 1988 than it was m 1987. Tha " amount generally depends on your filing status.5 the blowing table shows Standard deduction