Tax return question?

<p>Hi,</p>

<p>The school asks me for the tax return document...?</p>

<p>My parents and I have green cards.
I am not working...
My parents have a job in other country.
What should I do in order to get the fafsa?
Just tell them my parents work in other country?
Give the fafsa office their salary report?
File a foreign tax return??</p>

<p>Thanks!!!</p>

<p>If your parents have green cards, they should be filing U.S. income tax returns even if they have no taxable income and live in another country. That should be your first step.</p>

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<p>Really?? Even if their income is below $3000 a year?? I thought that you didn’t have to file if your income was below a certain threshold…But then, I’m not a tax expert.</p>

<p>If your parents are not required to file, they will fill out a non tax-filer statement - you,too. This should be available through your school’s financial aid office (probably on their website).</p>

<p>How do I know if they are required to file or not…??
their income is about $30000…($0 is earned in the us)
So we just have to fill out a non tax-filer statement?
Can I do it right now??or the deadline is already passed?</p>

<p>You must attach copies of any W-2 form(s) and/or 1099 form(s) received in 2008.???
We do not have those forms…</p>

<p>What should I do now…?and the tax return deadline is passed…can my parents still file it?
what form should they use…??and just put down the amount that they earned in other country on the form?</p>

<p>

Because the OP said his/her parents worked in the other country. I was assuming that meant they had income. It just isn’t taxable to the U.S.</p>

<p>

No. Assuming their income is over the threshold required to file (standard deduction plus personal exemptions] they must file a return. Most likely, they will file a Form 2555 exempting their foreign earned income, but they must file. Greencard holders also have special requirement in order to keep their status. I hope they are following those.</p>

<p>

They can, and should, file even after the deadline has passed. I think they should hire a professional.</p>

<p>If your parents were outside the US on April 15, they have an automatic extension of the due date, so they may still have time to file for 2008.</p>

<p>Filing tax forms (whether or not any taxes are actually due) is something your parents should be doing to maintain their permanent residence status. On the form 2555, they should indicate the dates for being abroad so that they qualify for the foreign earned income exemption based on “physical presence”. If they claim it based on “bona fide residence” it is possible that the US government will consider that they have voluntarily relinquished their permanent residence.</p>

<p>The main website is [Internal</a> Revenue Service](<a href=“http://www.irs.gov%5DInternal”>http://www.irs.gov) You will also want to take a look at the FAQs for Foreign Income at <a href=“http://www.irs.gov/faqs/faq13-3.html[/url]”>http://www.irs.gov/faqs/faq13-3.html&lt;/a&gt;&lt;/p&gt;

<p>These forms are not particularly difficult to complete, just time-consuming. I used to do them when Happydad and I were living overseas.</p>

<p>Good luck!</p>

<p>the form is “Foreign Earned Income”
So it is not a form of tax return…?
Can I still give it to the fafsa office as a tax return document?</p>

<p>Name shown on Form 1040??do they need to fill out 1040?
Can they file 1040 right now?</p>

<p>and what if my father does not have ssn?</p>

<p>If your parents have green cards, they should also have social security numbers. They can’t work legally in the US without them, and they can’t pay taxes (or file tax returns) without them. So, if your mom is the only one with a SSN, she needs to fix things so your dad has one too. You need to get your SSN (if for some reason you don’t have one yet) as well.</p>

<p>Your parents need to file Form 1040. That is the main tax return form. They will also file Form 2555 along with their Form 1040. There may be some other forms necessary as well. After you read through the FAQ link that I posted above, and other sections of the IRS website, if you still have questions you can email the IRS for further assistance. In my experience the staff has been very helpful.</p>

<p>I don’t know a thing about these tax filings for income abroad but I’m interested in learning. So…does someone who has a green card who earned NO income in the U.S. still file a U.S. tax return?</p>

<p>Thumper, yes they must file if they earned above the threshold amount, just as US citizens must file even if they earned their income abroad. They get the usual credit for foreign tax paid. Here’s a quick overview:
<a href=“http://www.irs.gov/pub/irs-pdf/p4588.pdf[/url]”>http://www.irs.gov/pub/irs-pdf/p4588.pdf&lt;/a&gt;&lt;/p&gt;

<p>so…the 6/15 deadline is coming, and my father does not have ssn, my mother does.
Should they file 1040 first?or wait for the ssn and then file the 1040?</p>

<p>They do not have Form W-2, because they work in other country
So they can just put the amount of Wages, salaries, tips and do not have to attach any document?or they need to attach their salary report(in other country)?</p>

<p>Also, how can they pay for the taxes?and how do they know how much they should pay? just attach a check with the tax return?when do they have to pay for it?</p>

<p>Thanks!</p>

<p>They should file a 1040 with the 2555 attached and any other schedules they need. Then they should file a W-7 with it which is a form asking for a Taxpayer Identification Number (TIN) for your father. If they owe, which they probably won’t if done correctly, they should send in payment with it. I still say they should take this to an accountant.</p>

<p>I would recommend your parents visit your local IRS office or a professional tax office. They will be able to tell your parents precisely what and how to resolve any previous tax filings. Foreign earned income can be tricky to those without previous experience…professionals (either at the IRS or a private company) can help your parents step by step through the process and help ensure they do not overpay taxes, etc.</p>

<p>skylinelks -
The foreign earned income exemption is pretty big (something like $90,000) so chances are your parents won’t owe any money. Depending on where you live, there may be someone at the US Consulate who can help you with the tax forms. When I lived in Venezuela, there was a group of volunteers who did this. Worry about this years taxes first, then go back and straighten out any previous years.</p>

<p>thumper1 -
The US government considers all income earned by citizens and permanent residents anywhere in the world to ultimately be taxable. The tax code takes into account taxes paid to other governments, and has a sizeable foreign income exemption that also is taken out before any other exemptions. A green card holder who is working overseas needs to demonstrate that he/she still considers him/herself a permanent resident in the US. Filing Federal Income Tax paperwork even if there is no money owed is one way of demonstrating that intent. So is returning to the US periodically. People who have green cards and then go live and work in another country for an extended period of time risk losing their permanent residence status. They have to be very careful to make it clear to US immigration authorities that this is a temporary thing that is due to some peculiar requirement of their professional career. Happydad and I were overseas for seven and a half years and managed to maintain his permanent residence in the US. It was a huge headache, but better than losing the status and having to reapply when we moved back here.</p>

<p>Thanks Happymom. I understand. Part of the reason for filing is to continue to demonstrate your permanent residency status. Thanks for the clarification.</p>