The Commerce Journal,Business and Local Businesses
*The Commerce Journal>>>United States Taxes

Anyone out there expert in Federal Individual Tax? I have a tax project and i am stuck no tax experience?


Mr and Mrs Y file a joint return, no dependents and take the standard deductions. In 2005--each made $80,000. Mr Y spent 335 days of the year living and working for American employer in Bulgaria and the remainder of the year back in Texas. Mrs Y maintained their rented home in Texas. Mr Y is eligible for the foreign income exclusion and Mrs Y is not. What is their 2005 tax bill?
In 2006 same issue, what is their 2006 tax bill? Why is their liability so hugely different?

Go to irs.gov and type in 2005 in the search box, look at the publications; do the same for 2006.

The foreign earned income exclusion form is form 2555.

The difference between 2005 and 2006 is that in 2005, the income that was excluded was the income for the highest tax brackets. For 2006 (after a tax law change), the income excluded was for the lowest tax brackets.

visit IRS website: www.irs.gov or call 1-800-829-1040 or visit your local IRS office.

Tags
  Austin   Atlanta   Other - Business & Finance   Other Taxes   United States Taxes   United Kingdom Taxes   Spain Taxes   Singapore Taxes   Mexico Taxes   Ireland Taxes   India Taxes
Related information
  • W2 question. My husband and I have separated but not legally yet. He's moved out and had his mail forwarded.

    dont do it Bella. He will file married but seperate to keep the money from you..thre's nothing you can do about that other than fight for the money in court. If you get his W2's and file...

  • Will my fiance and I have to pay more in taxes if we get married?

    You will break even. If you are married and have a joint income of $135,000 (That's $65,000 + $70,000) and claim standard deduction, your federal tax liability will be $22,222. If each of yo...

  • Taxes.....?

    That depends on how much you make. They'll take 7.65% for social security and medicare in any case. If you make under $100 a week or so, they probably won't take anything for federal in...

  • So we can't go in to H & R Block and file our taxes electronic until 2 weeks after the first of the year?

    Most H&R Block offices will be open beginning Jan 2. If you have your W2's, or other filing documents, or if you are self-employed and have your information together, then you are welcome ...

  • When should we USUALLY receive our W2 tax forms?

    Your employer has to have them in the mail by 31 Jan. (The way the law is written, that means "in the mail", not in your hand or even postmarked, just in the mail.) Usually you should g...

  • What's the difference between IRS forms(s): 1040, 1040A, & 1040EZ?

    The 1040 can be used by everybody. The 1040EZ can only be used if you have wage income of less than $100,000 and are filing as either single or Married filing jointly with no dependents. Intere...

  • Can I put school supply costs on my taxes?

    Yes you can, but I believe you have to choose between those write-offs or the basic deduction everyone receives. You typically need receipts if you are planning on writing those items off, so hope...

  • I LOVE tax time. Does anybody else?

    There are only three possible reasons you would say that: 1. You are in the business of selling tax advice or doing returns for people (like a CPA for example). 2. You are just joking aroun...

  •  

    Commerce Categories--Copyright/IP Policy--Contact Webmaster