Annual Taxable Income

[Ranchris 0]

Will foreign income be factored into the yearly income used to calculate the rate at which a new resident will be taxed....prior to and after becoming USC? Sure hope this is the right forum.

[Old Dominion 26]

If tax was paid on the foreign income, it won't be taxed by the US.

[pushbrk 12,898]

If tax was paid on the foreign income, it won't be taxed by the US.

Well yes but around $80,000 of foreign income is exempt from tax anyway. Best to just consult with a tax specialist.

[Ranchris 0]

Much thanks for the response thus far. I don't know if the following would help but I want to add to it anyway.

There is no income tax in the Bahamas. There are othr taxes like property, national insurance, etc.. but no Income Tax. The foreign income is my present salary , once the visa is approved I will leave my current job and receive a gratutity or bonus . This I intend to leave in Bahamas but will have access to . The remaining foreign income which is derrived from the rental of my house ...the house is not paid for and still has a mortgage attached to it.

[Old Dominion 26]

When you get ready to file your US income taxes, allow a tax accountant to prepare your tax return. That way, there is no doubt and whatever the accountant sets up in order to deal with your continuing Bahamian income is guidance for your tax returns for ensuing years.

[himher 634]

Foreign income can be excluded (up to the foreign income exemption limit) under (2) conditions:

1. Residence overseas. Showing proof of residence overseas allows exemption of foreign income. As soon as you file as an overseas resident for purposes of avoiding income tax, then you lose eligibility for permanent residence in the US

2. Physical presence. Working and remaining outside the US for (330) days allows you to exclude foreign earned income from taxation. You can meet the "residence test" for the purpose of maintaining green card status and still pass the "physical presence" test for purposes of exempting foreign earned income. Can't have both - live in the US and enjoy the foreign earned income exclusion at the same time.

As advised earlier, please see a tax specialist. Understand that proper handling of taxes and filing taxes as a "resident" directly correlates to your status as a US LPR. For 2008, if you were never in the country and if you were married by Dec 31st, you are OK, declare your income jointly, choose "resident", and then exclude your income (up to $87,600) on "physical presence" basis. In 2009 and future years, unfortunately, your income is part of "worldwide" income and as such is taxable unless you choose to stay in the Bahamas (who wouldnt? <laughing>) for >330 days while also maintaining a US residence.

Dominion is correct, in that you get a "credit" for income tax paid on foreign income, meaning that the tax you paid gets credited on the tax you are supposed to pay so you don't get double-taxed on the same income.

If tax was paid on the foreign income, it won't be taxed by the US.

Well yes but around $80,000 of foreign income is exempt from tax anyway. Best to just consult with a tax specialist.

[Ranchris 0]

Thanks for your response HIMHER...However so as you and others are not misinformed as to my objectives...please be advised that I as a K1 with K2 derivatives who are currently in school and University...I am currently employed with asests in my country. In the event of the K1 Visa approval via the US Embassy here....my employer requires notice of leave ( 1 month per agreement)and I would need to secure assets and/satisfy liabilities....all the fore-mentioned needs to be adequately resolved in particular the children who need to complete the school year....this takes time.....having both is not an option for me....this was decided the moment I agreed to become a USC's wife. To me this is a sacrifice of love nothing more...I'm not running from anything/anyone here....instead I'm runing to be with the one I love.....you have noooo idea of the sacrifice we have both(alien/USC) made.....hence your comment/suggestion "to be exempt from foreign income...can't have both" is baseless.......and disrespectful to suggest that your fellow Native USC would engage in the idea let alone act you suggest. My fiance is unwavering in his committent to his country .... he has and will continue to put his country above himself....given that you do not know us nor our circumstance.....and never ienquired prior to your statement.....I find your remark offensive/distasteful....I'm sure you would appreciate and understand.

Edited March 20, 2009 by Ranchris

[anitacastillo 0]

Thanks for your response HIMHER...However so as you and others are not misinformed as to my objectives...please be advised that I as a K1 with K2 derivatives who are currently in school and University...I am currently employed with asests in my country. In the event of the K1 Visa approval via the US Embassy here....my employer requires notice of leave ( 1 month per agreement)and I would need to secure assets and/satisfy liabilities....all the fore-mentioned needs to be adequately resolved in particular the children who need to complete the school year....this takes time.....having both is not an option for me....this was decided the moment I agreed to become a USC's wife. To me this is a sacrifice of love nothing more...I'm not running from anything/anyone here....instead I'm runing to be with the one I love.....you have noooo idea of the sacrifice we have both(alien/USC) made.....hence your comment/suggestion "to be exempt from foreign income...can't have both" is baseless.......and disrespectful to suggest that your fellow Native USC would engage in the idea let alone act you suggest. My fiance is unwavering in his committent to his country .... he has and will continue to put his country above himself....given that you do not know us nor our circumstance.....and never ienquired prior to your statement.....I find your remark offensive/distasteful....I'm sure you would appreciate and understand.

You got great, free, non-judgmental advice and now you are complaining??? I think you misread the words/intent.

I hope you aren't taking your children geographically away from their father -- but most children's parental relationships aren't thought of when the non-USC "follows their heart" to the US.

[Old Dominion 26]

I didn't see anything offensive in HIMHER's post. All American taxpayers are entitled to find legal ways to reduce their income taxes to an absolute minimum. It is not at all unpatriotic to do that.

Again, when you are finally on American soil, see a professional tax accountant to unravel the complications. (I don't mean a tax preparing firm like H&R Block). They are not terribly expensive and can save you a lot of money in the short run. Once the accountant gets you set up to handle the continuing Bahamian income properly, you can do it yourself in the coming years.

Good luck getting it all sorted out with immigration, the first obstacle you have.

[Ranchris 0]

The remarks made by HIMHER I am sorry but I insist at a point...TO ME became offensive and I stated which part. It is my opinion that if when questions are asked that resepondents stay away from assumptions......bearing in mind that these boards are viewed by government officials , citizens from any country especially the USA.....and as such is subject to their interpretation.

That said I also wish to take the opportunity to make all the "anitacastillo's" aware of the following:

1. The Bahamas is geographically soo close to USA that you can stand on the shores of the most northerly island and see the State of Florida...yet its citizens are not considered immigration threat to the USA.

2. It takes 30 mins and less, costs less than B$100.00 (at times) to travel to USA from where I live.

3. Bahamians do not require a visa (excluding convicts) to travel to any USA port from the Bahamas.

4. We require passport ( each of my children had since birth) and a police record (obtainable 1 day good for 3 months..cost B$2.50) to travel t USA.

5.Our dollar is on par with the U$ (B$1:U$1).

5. No divorce is absolute in the Bahamas until the children interests (rights)are fully protected .......for i.e the late Ana NIcole's daughter was returned to her biological father here in the Bahamas....we do have a social services here in the Bahamas.

6. I have previously been required to work and have worked alongside US law enforcment in the USA....so my character is an open book.

Further information about the Bahamas can be viewed at the Bahamas website (bahamas.gov.bs).

Need I say more...however my children ( who quite capable of speaking for themselves) will be attending the interview and I think the Embassy here in Nassau is quite capable of doing their job and will decide our case for themselves......I can live with whatever their decision is.

However, any legitimate concerns you may have concerning me or the welfare of my children I would be much oblidged to address. Thanks for your concern.

Edited March 21, 2009 by Ranchris

[Ranchris 0]

I think the Embassy here in Nassau is quite capable of doing their job

Sorry correction...I know the USA Embassy here is Nsaau, Bahamas is more than capable of doing their job.

[Old Dominion 26]

You got the advice you requested. What are these other issues all about? Be prepared to be regarded as an alien when you are in the U.S., and when that happens, don't take it personally or as some kind of insult. If you don't thicken your skin, then maybe you and your fiance need to have a long conversation.

[Ranchris 0]

Sorry, I'vee no further comments on this matter

[himher 634]

I'm sure, quite positive, that I could care less how you find my remarks. I happen to work overseas, i.e. familiar with the rules and regs of reporting, excluding, including, and filing taxes on foreign earned income. I could (also) care less what "officials" whoever they may be read that either. Are you kidding me? Tax law is printed on paper (with readable) letters and is applied across the board. Said tax law unfortunately screws part-year residents unless they either file as non-residents or stay out of the country for most of the year that they earn the income. I merely outlined the available options for filing taxes with foreign earned income and at the same time pointed out the possible effects of choosing either option on how your status is interpreted as a PR.

Although you seem to believe your case details are hugely interesting in some way, please accept some feedback that they are not, so as such they constitute "bleh bleh bleh" without adding value to this discussion. As far as this question (taxable income) is concerned, I believe it has been asked and answered. Please make immediate, specific, and executable plans to bring your nasty attitude back to what I am sure is your new happy household and try not to insult people who were in fact just trying to help you.

Thanks for your response HIMHER...However so as you and others are not misinformed as to my objectives...please be advised that I as a K1 with K2 derivatives who are currently in school and University...I am currently employed with asests in my country. In the event of the K1 Visa approval via the US Embassy here....my employer requires notice of leave ( 1 month per agreement)and I would need to secure assets and/satisfy liabilities....all the fore-mentioned needs to be adequately resolved in particular the children who need to complete the school year....this takes time.....having both is not an option for me....this was decided the moment I agreed to become a USC's wife. To me this is a sacrifice of love nothing more...I'm not running from anything/anyone here....instead I'm runing to be with the one I love.....you have noooo idea of the sacrifice we have both(alien/USC) made.....hence your comment/suggestion "to be exempt from foreign income...can't have both" is baseless.......and disrespectful to suggest that your fellow Native USC would engage in the idea let alone act you suggest. My fiance is unwavering in his committent to his country .... he has and will continue to put his country above himself....given that you do not know us nor our circumstance.....and never ienquired prior to your statement.....I find your remark offensive/distasteful....I'm sure you would appreciate and understand.

[daboyz 36]

Wow. The guy asked a question. How did this go off the tracks?