Do I need to pay taxes if I come back to the USA early (more than 30 days)?

[dhouse89 3]

I'm planning to come back to the United States in October. I've lived in Japan for most of the time in 2023, but I visited Guam for 2 days in March 2023. Long story short, I've lived in Japan for a long time and I've been tax except from paying any taxes to the IRS.

 

My question is, do I need to pay taxes to the IRS on what I earned in Japan when I file my 2023 taxes? The reason why I'm asking is because if I'm right, I need to pay taxes to the IRS if I stayed more than 30 days in the US. Also, since I'm coming back in October and will stay in the US till the end of the year, It will be more than 30 days.

[Crazy Cat 39,575]

Tax exempt?  You have been reporting your world-wide income to the IRS every year, right? 

Edited August 15, 2023 by Crazy Cat

[Boiler 43,687]

More a question for your CPA

[EM_Vandaveer 2,370]

You're not exempt from filing... (I'm assuming your income was over the filing threshold.)

[Crazy Cat 39,575]

Seems to me that the proper course of action would be to report all world-wide income as required by law, and exclude qualifying foreign income as allowed.

[dhouse89 3]

6 minutes ago, Crazy Cat said:

Tax exempt?  You have been reporting your world-wide income to the IRS every year, right? 

@Crazy Cat @EM_Vandaveer

 

Maybe I said it incorrectly. Since I made less than 100K USD a year, I don't have to the pay the IRS any money from what I earned in Japan.

 

My question is, do I have to pay taxes on what I earned in Japan because I'll come back to the US this October and will be staying there till the end of the year?

[Mike E 11,725]

19 minutes ago, dhouse89 said:

I'm planning to come back to the United States in October.

Are you a U.S. citizen?

[Crazy Cat 39,575]

2 minutes ago, dhouse89 said:

My question is, do I have to pay taxes on what I earned in Japan

My research shows you can still file foreign income exclusion even while inside the US.  This is a CPA question.  Good Luck.

[Redro 4,601]

41 minutes ago, dhouse89 said:

I'm planning to come back to the United States in October. I've lived in Japan for most of the time in 2023, but I visited Guam for 2 days in March 2023. Long story short, I've lived in Japan for a long time and I've been tax except from paying any taxes to the IRS.

 

My question is, do I need to pay taxes to the IRS on what I earned in Japan when I file my 2023 taxes? The reason why I'm asking is because if I'm right, I need to pay taxes to the IRS if I stayed more than 30 days in the US. Also, since I'm coming back in October and will stay in the US till the end of the year, It will be more than 30 days.

File 2555 like you usually do make the dates X October 2022- (day you left Japan). Report any income you make in US from October- December. Source- we did this for tax year 2022. 

Edited August 15, 2023 by Redro
2555Ez Doesn’t exist anymore

[dhouse89 3]

21 minutes ago, Mike E said:

Are you a U.S. citizen?

Yes. Do you have any idea if I have to pay taxes or not? thank you.

 

 

 

@Redro I apologize for disturbing you. But while I was looking at your timeline (You helped me in my previous question). I saw you and your husband move to the US last year in September 2022. I'm guessing you and your husband was earning income in South Korea before you moved to the US. If it's okay for me to ask, how did you and your husband dealt with the income earned in South Korea while filing out the 2022 taxes for the US? Also,  Did you and your husband had to pay taxes to the IRS from your South Korean income because you and your husband stayed in the US for more than 30 days? I hope I'm making proper sense. Thank you.

[Ayrton 965]

1 hour ago, dhouse89 said:

I'm planning to come back to the United States in October. I've lived in Japan for most of the time in 2023, but I visited Guam for 2 days in March 2023. Long story short, I've lived in Japan for a long time and I've been tax except from paying any taxes to the IRS.

 

My question is, do I need to pay taxes to the IRS on what I earned in Japan when I file my 2023 taxes? The reason why I'm asking is because if I'm right, I need to pay taxes to the IRS if I stayed more than 30 days in the US. Also, since I'm coming back in October and will stay in the US till the end of the year, It will be more than 30 days.

 

You don't need to pay taxes for the money you made during the period you were still living in Japan. If you moved to the US and kept working remote, you have to pay taxes on the amount you made remote. You will still use form 2555 to exclude that income.

 

What other people here are trying to tell you is that even though you can exclude up to 105k for living abroad, you must still file taxes (file doesn't mean paying) for the years you were living abroad.

Edited August 15, 2023 by Ayrton

[Redro 4,601]

10 minutes ago, dhouse89 said:

Yes. Do you have any idea if I have to pay taxes or not? thank you.

 

 

 

@Redro I apologize for disturbing you. But while I was looking at your timeline (You helped me in my previous question). I saw you and your husband move to the US last year in September 2022. I'm guessing you and your husband was earning income in South Korea before you moved to the US. If it's okay for me to ask, how did you and your husband dealt with the income earned in South Korea while filing out the 2022 taxes for the US? Also,  Did you and your husband had to pay taxes to the IRS from your South Korean income because you and your husband stayed in the US for more than 30 days? I hope I'm making proper sense. Thank you.

 

24 minutes ago, Redro said:

File 2555 like you usually do make the dates X October 2022- (day you left Japan). Report any income you make in US from October- December. Source- we did this for tax year 2022. 

Answered in the post above you. file the 2555 but make the 365 days cover October 2022 - October 2023. You won’t pay taxes on your Japanese income but you will pay taxes on your US income. 

[Mike E 11,725]

24 minutes ago, dhouse89 said:

Do you have any idea if I have to pay taxes or not? thank you

File a tax return and find out.

Japanese income tac rates are higher than U.S. rates, IRS does not double tax. You will be fine.

 

[JeanneAdil 6,239]

you pay on US income

file form 2555 for exclusion of foreign income 

 For tax year 2023, the maximum exclusion is $120,000 per person.Jun 28, 2023

[kzielu 1,147]

10 hours ago, dhouse89 said:

Maybe I said it incorrectly. Since I made less than 100K USD a year, I don't have to the pay the IRS any money from what I earned in Japan.

 

My question is, do I have to pay taxes on what I earned in Japan because I'll come back to the US this October and will be staying there till the end of the year?

 

It doesn't really matter where you live - whether you are in US, Japan, Guam or a moon. You have to report your income wherever you earned and if you meet conditions to exclude it (under limit, taxes paid, treaty country where you paid taxes) then you won't pay. IRS doesn't care where you physically are if that makes sense. For them you are a US citizen / PR and have tax liability to them.