Jump to content
Sign in to follow this  
ZedbraGuy

2011 Taxes in Turbo Tax

24 posts in this topic

Recommended Posts

We're having some problems with Turbo Tax, and I've read some threads but can't find the answer

I lived and worked in the UK until the end of June 2011

I entered the USA on the 1st July 2011

I got my green card on the 1st December 2011

I've of 6 months of wages from the UK

And also about $1500 in investment income

When we try and declare it in Turbo Tax its trying to tax me on everything and get us to fill out loads of extra forms

How do I get the exemption from foreign earned income?

When do I become a taxable US resident, I read it's probably before I got my green card, is this correct?

How do I separate investment income from when I was UK taxable to when I'm US taxable

We've got the Home and Business version of Turbo Tax because my wife runs her own business

Please help, we don't have thousands of dollars laying around


event.png

Share this post


Link to post
Share on other sites

We're having some problems with Turbo Tax, and I've read some threads but can't find the answer

I lived and worked in the UK until the end of June 2011

I entered the USA on the 1st July 2011

I got my green card on the 1st December 2011

I've of 6 months of wages from the UK

And also about $1500 in investment income

When we try and declare it in Turbo Tax its trying to tax me on everything and get us to fill out loads of extra forms

How do I get the exemption from foreign earned income?

When do I become a taxable US resident, I read it's probably before I got my green card, is this correct?

How do I separate investment income from when I was UK taxable to when I'm US taxable

We've got the Home and Business version of Turbo Tax because my wife runs her own business

Please help, we don't have thousands of dollars laying around

You may want to consider posting your tax issue in a Turbo Tax forum....... :blink:

Yeah, I doubt that there are many of us that have thousands of dollars laying around, particularly after the recent series of financial meltdowns...... :unsure:

Good luck.

YMMV.


Completed: K1/K2 (271 days) - AOS/EAD/AP (134 days) - ROC (279 days)

> Almost 2 years of our lives involved with the USCIS/DOS "shuffle" & worth every second of it ! <

"Si vis amari, ama" - Seneca

_______________________

:idea: Read more, post less.... Google can be your friend ! :idea:

Prior apologies if I can explain it to you, but I can't understand it for you.

Keep your timeline current: http://www.visajourney.com/timeline/

Share this post


Link to post
Share on other sites

.....there's a turbo tax forum? I'll have to try and find it

Found This forum through the use of a google search. :unsure:

Good luck...


Completed: K1/K2 (271 days) - AOS/EAD/AP (134 days) - ROC (279 days)

> Almost 2 years of our lives involved with the USCIS/DOS "shuffle" & worth every second of it ! <

"Si vis amari, ama" - Seneca

_______________________

:idea: Read more, post less.... Google can be your friend ! :idea:

Prior apologies if I can explain it to you, but I can't understand it for you.

Keep your timeline current: http://www.visajourney.com/timeline/

Share this post


Link to post
Share on other sites

When we try and declare it in Turbo Tax its trying to tax me on everything and get us to fill out loads of extra forms

How do I get the exemption from foreign earned income?

When do I become a taxable US resident, I read it's probably before I got my green card, is this correct?

How do I separate investment income from when I was UK taxable to when I'm US taxable

We've got the Home and Business version of Turbo Tax because my wife runs her own business

Please help, we don't have thousands of dollars laying around

This is my last year's walk-thru of TurboTax. It was TurboTax Basic installed on the computer. They change things around each year and I haven't gone through the 2011 program yet, but maybe this post will get you going. http://www.visajourney.com/forums/topic/293088-filing-taxes-as-married/page__view__findpost__p__4525477


England.gifENGLAND ---

K-1 Timeline 4 months, 19 days 03-10-08 VSC to 7-29-08 Interview London

10-05-08 Married

AOS Timeline 5 months, 14 days 10-9-08 to 3-23-09 No interview

Removing Conditions Timeline 5 months, 20 days12-27-10 to 06-10-11 No interview

Citizenship Timeline 3 months, 26 days 12-31-11 Dallas to 4-26-12 Interview Houston

05-16-12 Oath ceremony

The journey from Fiancé to US citizenship:

4 years, 2 months, 6 days

243 pages of forms/documents submitted

No RFEs

Share this post


Link to post
Share on other sites

Thanks to the walk through we got the return completed, although the next day the IRS sent us a rejection with maybe as many as 30 things they didn't like. Mostly stuff around the exemption on my wages from before I moved, so it's a good thing we have until April to complete it. I never thought I'd miss HMRC


event.png

Share this post


Link to post
Share on other sites

Thanks to the walk through we got the return completed, although the next day the IRS sent us a rejection with maybe as many as 30 things they didn't like. Mostly stuff around the exemption on my wages from before I moved, so it's a good thing we have until April to complete it. I never thought I'd miss HMRC

And PAYE!


01/27/2011 - Trevor's N400 submitted
02/18/2011 - Married
04/02/2011 - NOA1 hard copy received - priority date 03/30/2011
07/08/2011 - Trevor is now a USC - called USCIS to request upgrade of the petition.
08/02/2011 - NOA2
09/08/2011 - LND case number received, medical booked
09/26/2011 - Case complete at NVC
09/30/2011 - Interview date assigned
11/08/2011 - Interview - approved!!
11/10/2011 - Visa in hand
12/04/2011 - POE in Atlanta
12/12/2011 - SSN number received in mail
12/12/2011 - Welcome notice received
01/06/2012 - Green card received
09/06/2013 - File for Removal of Conditions
10/01/2013 - Biometrics for ROC
02/03/2014 - Card production email received

02/17/2014 - 2nd card production email received

02/28/2014 - 10 year Green card received

Share this post


Link to post
Share on other sites

And PAYE!

Well America has it's own version of PAYE. You'll still have tax deducted from each pay-check, just like in the UK.

But unlike the UK, American taxpayers can reduce their final liability with a multitude of potential deductions, hence the annual tax return for all.

We filed our taxes yesterday, and after claiming our mortgage interest, medical expenses, charitable donations etc, we got notification that we overpaid in 2011 by $2,000. And many of our friends and colleagues get a lot more back than that. Personally, I much prefer the American system (and the refund) to the British one. Of course I might feel differently if we found out we had UNDERPAID in 2011!


11-24-2006 Annette and I meet in Rome

09-09-2008 Engaged!

01-30-2009 Fiance petition filed

03-22-2009 Fiance petition approved. Case moves to U.S. embassy in London

04-01-2009 Package received from U.S. embassy in London

06-01-2009 Visa Medical (London)

06-23-2009 K1 Visa Interview (London)

06-27-2009 Passport returned by embassy. K1 Visa received!!

07-04-2009 Fly to Denver (port of entry - Houston, TX)

07-25-2009 We are married (the joint happiest day of my life)

08-07-2009 Social Security number obtained

08-20-2009 AOS, Advanced Parole and Employment Authorization forms filed

09-24-2009 Biometrics appointment (Aurora, CO)

10-05-2009 Advanced Parole received

10-09-2009 Employment Authorization received

10-13-2009 Colorado Learner's permit obtained and driving test scheduled

10-21-2009 Driving test taken and passed

11-30-2009 Green Card Interview (Centennial, CO)

12-08-2009 Green Card received

01-04-2010 Employed

01-28-2011 Our daughter is born (the other happiest day of my life)!

11-21-2011 Filed for Removal of Conditions

12-28-2011 Biometrics appointment (Aurora, CO)

03-16-2012 Card production ordered

03-23-2012 Card received

09-04-2012 Application for Naturalization filed

10-05-2012 Biometrics appointment (Aurora, CO)

12-11-2012 Naturalization Interview (Centennial, CO)

Share this post


Link to post
Share on other sites

I like turbotax. We've never had a problem and we have lived back and forth between the US and overseas.

You do have to fill out the loads of extra forms LOL.

Foreign earned income exemption is calculated either on the basis of "physical presence" or "bonafide residence" tests. You should file the exemption under the "bonafide residence" test aka bonafide residence overseas through your POE date.

You become a taxable US resident when you entered at your POE and drove to your new residence. That's around July 1st.

Turbotax will subtract 50% (Jan-July) of $96,000 and the rest of your income, sadly, is taxable.

Welcome to America!

We're having some problems with Turbo Tax, and I've read some threads but can't find the answer

I lived and worked in the UK until the end of June 2011

I entered the USA on the 1st July 2011

I got my green card on the 1st December 2011

I've of 6 months of wages from the UK

And also about $1500 in investment income

When we try and declare it in Turbo Tax its trying to tax me on everything and get us to fill out loads of extra forms

How do I get the exemption from foreign earned income?

When do I become a taxable US resident, I read it's probably before I got my green card, is this correct?

How do I separate investment income from when I was UK taxable to when I'm US taxable

We've got the Home and Business version of Turbo Tax because my wife runs her own business

Please help, we don't have thousands of dollars laying around


 

i don't get it.

Share this post


Link to post
Share on other sites

So we look at our Turbo Tax rejection, and it rejected every page. For some reason we are not allowed to e-file, I had a look online and couldn't find a good reason. So we've printed it out and will see what happens


event.png

Share this post


Link to post
Share on other sites

Turbotax will subtract 50% (Jan-July) of $96,000 and the rest of your income, sadly, is taxable.

Welcome to America!

Is that what it does? How is that percentage determined?


“The minute I heard my first love story I started looking for you, not knowing how blind that was.
Lovers don't finally meet somewhere.
They're in each other all along.”


Jalal ad-Din Rumi

Share this post


Link to post
Share on other sites

If this is what TurboTax does, then TurboTax is not correct.

Is that what it does? How is that percentage determined?


CR-1 Timeline

March'07 NOA1 date, case transferred to CSC

June'07 NOA2 per USCIS website!

Waiver I-751 timeline

July'09 Check cashed.

Jan'10 10 year GC received.

Share this post


Link to post
Share on other sites

Is that what it does? How is that percentage determined?

That's not exactly how it works. The max you can subtract is 96,000. So lets say your earnings converted to US dollars is 100,000. You exceed the max by 4,000. So that's taxable for sure. But the only way you get the maximum is by being in your country abroad the entire year.

stayed/resided/lived abroad the entire year = 100% = $96,000 to exclude

stayed/resided/lived abroad 3/4 year = 75% = $72,000 allowed to exclude

stayed/resided/lived abroad 1/2 year = 50% = $48,000 allowed to exclude

stayed/resided/lived abroad 1/3 year = 33% = $32,000 allowed to exclude

That's why the form wants to know the days abroad, ie. Jan 1 to POE date. If your number of days abroad was 227 days, then---

227/365 (days in a year) = 62.1% of the year abroad

62.1% of the max $96,000 is $59,704. Thus a person abroad 227 days only gets to exclude $59,704.

If that person made $100,000, then 100,000 - 59,704 exclusion = $40,296 taxable.

A very high wage earner may not benefit from filing jointly with a USC spouse. But again, if they left their country and job halfway through the year, they may not have earned as much in 2011 as they normally would have. That's why we say figure the USC's return Married Filing Separately AND Married Filing Jointly with worldwide income. Then pick the status that gives the lowest taxation. Either way is legal. If the immigrant did not work in the US in 2011, they do not have to file a tax return or be on the spouse's return. In most cases it's beneficial, but not always.

Edited by Nich-Nick

England.gifENGLAND ---

K-1 Timeline 4 months, 19 days 03-10-08 VSC to 7-29-08 Interview London

10-05-08 Married

AOS Timeline 5 months, 14 days 10-9-08 to 3-23-09 No interview

Removing Conditions Timeline 5 months, 20 days12-27-10 to 06-10-11 No interview

Citizenship Timeline 3 months, 26 days 12-31-11 Dallas to 4-26-12 Interview Houston

05-16-12 Oath ceremony

The journey from Fiancé to US citizenship:

4 years, 2 months, 6 days

243 pages of forms/documents submitted

No RFEs

Share this post


Link to post
Share on other sites

That's not exactly how it works. The max you can subtract is 96,000. So lets say your earnings converted to US dollars is 100,000. You exceed the max by 4,000. So that's taxable for sure. But the only way you get the maximum is by being in your country abroad the entire year.

stayed/resided/lived abroad the entire year = 100% = $96,000 to exclude

stayed/resided/lived abroad 3/4 year = 75% = $72,000 allowed to exclude

stayed/resided/lived abroad 1/2 year = 50% = $48,000 allowed to exclude

stayed/resided/lived abroad 1/3 year = 33% = $32,000 allowed to exclude

That's why the form wants to know the days abroad, ie. Jan 1 to POE date. If your number of days abroad was 227 days, then---

227/365 (days in a year) = 62.1% of the year abroad

62.1% of the max $96,000 is $59,704. Thus a person abroad 227 days only gets to exclude $59,704.

If that person made $100,000, then 100,000 - 59,704 exclusion = $40,296 taxable.

A very high wage earner may not benefit from filing jointly with a USC spouse. But again, if they left their country and job halfway through the year, they may not have earned as much in 2011 as they normally would have. That's why we say figure the USC's return Married Filing Separately AND Married Filing Jointly with worldwide income. Then pick the status that gives the lowest taxation. Either way is legal. If the immigrant did not work in the US in 2011, they do not have to file a tax return or be on the spouse's return. In most cases it's beneficial, but not always.

Thank you Nich-Nick- really glad to have you here in this forum, your insights save the rest of us a lot of headaches! :thumbs:


“The minute I heard my first love story I started looking for you, not knowing how blind that was.
Lovers don't finally meet somewhere.
They're in each other all along.”


Jalal ad-Din Rumi

Share this post


Link to post
Share on other sites
 
Didn't find the answer you were looking for? Ask our VJ Immigration Lawyers.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  
- Back to Top -


Important Disclaimer: Please read carefully the Visajourney.com Terms of Service. If you do not agree to the Terms of Service you should not access or view any page (including this page) on VisaJourney.com. Answers and comments provided on Visajourney.com Forums are general information, and are not intended to substitute for informed professional medical, psychiatric, psychological, tax, legal, investment, accounting, or other professional advice. Visajourney.com does not endorse, and expressly disclaims liability for any product, manufacturer, distributor, service or service provider mentioned or any opinion expressed in answers or comments. VisaJourney.com does not condone immigration fraud in any way, shape or manner. VisaJourney.com recommends that if any member or user knows directly of someone involved in fraudulent or illegal activity, that they report such activity directly to the Department of Homeland Security, Immigration and Customs Enforcement. You can contact ICE via email at Immigration.Reply@dhs.gov or you can telephone ICE at 1-866-347-2423. All reported threads/posts containing reference to immigration fraud or illegal activities will be removed from this board. If you feel that you have found inappropriate content, please let us know by contacting us here with a url link to that content. Thank you.
×