RESIDENCE for US Tax Returns

[intrepid]

8 hours ago, Happyhorn52 said:

Are you working or retired There are tax savings if you live outside the USA.

 

Working,...Bite your tongue!  Never again,...I hope.

[intrepid]

1 hour ago, earthdome said:

One other thing to consider for using a Philippines address is if you would be subject to paying a penalty to the IRS for not having a US health insurance policy

Thanks earthdome, I've got that base covered.

[Gentleman.Jack.Darby]

17 hours ago, earthdome said:

One other thing to consider for using a Philippines address is if you would be subject to paying a penalty to the IRS for not having a US health insurance policy. Though that may not be an issue in coming years if that part of the ACA is repealed.

earthdome, I'm not picking on you and I'm not trying to split hairs, but under "ObamaCare" which is also known as the Affordable Care Act, there is no "penalty" if one does not have a U.S. health insurance policy and one fails to make the laughably PC named "shared responsibility payment" that some folks refer to as the "health care tax" or "penalty".

The IRS is specifically barred from using liens or levies, their usual fearsome and powerful tools for collecting taxes that are legally enforceable, to collect unpaid "shared responsibility payments".

However, the IRS CAN withhold any tax refunds and, presumably, any refundable credits, such as the Earned Income Credit, to which a taxpayer may be entitled to satisfy any unpaid "shared responsibility payments".

See the following FAQ, Item 29, on the IRS website that states, in pertinent part, "...The law prohibits the IRS from using liens or levies to collect any individual shared responsibility payment. However, if you owe a shared responsibility payment, the IRS may offset that liability against any tax refund that may be due to you." at the following URL:

https://www.irs.gov/...ility-provision

As well, if a person meets the rather stringent requirements to qualify as a bond-fide resident of a foreign country for, essentially, an entire tax year, as laid out in IRS Publication 54, he is also exempt from the provisions of the Affordable Care Act.

 

 

[AlwaysRt]

9 hours ago, Gentleman.Jack.Darby said:

See the following FAQ, Item 29, on the IRS website that states, in pertinent part, "...The law prohibits the IRS from using liens or levies to collect any individual shared responsibility payment. However, if you owe a shared responsibility payment, the IRS may offset that liability against any tax refund that may be due to you." at the following URL:

How is it better that the IRS can't punch me in the face with their right hand, they have to use their left hand? My face still hurts...

Same as we should all feel great as the lottery (pick one) has now raised over $1 Billion for educating our children (what they don't do is finish the sentence... while we cut $1 Billion for education spending from the general fund so we can do stupid projects that benefit us, our friends, and our political contributors.)

[OnMyWay]

3 hours ago, AlwaysRt said:

How is it better that the IRS can't punch me in the face with their right hand, they have to use their left hand? My face still hurts...

Same as we should all feel great as the lottery (pick one) has now raised over $1 Billion for educating our children (what they don't do is finish the sentence... while we cut $1 Billion for education spending from the general fund so we can do stupid projects that benefit us, our friends, and our political contributors.)

And a high % of that lottery money was obtained from people who can't afford it, so in hindsight, you could call it a tax on the poor!

[AlwaysRt]

1 minute ago, OnMyWay said:

And a high % of that lottery money was obtained from people who can't afford it, so in hindsight, you could call it a tax on the poor!

Yes, I have heard that before and understand that viewpoint but there also is individual responsibility to be considered. No one makes you buy a lottery ticket as opposed to the need eat and having to pay sales tax etc.

Anyway, my point was governments will tell you and show you one thing, even make laws. But often have plans to 100% circumvent what they just said and the law they just enacted. The "house of cards" citizens are shown, very solid and strong from the angle politicians show you, but as fake as a hollywood soundstage set in reality. Trust but verify is what more people need to do, followed by hold accountable for their actions.

[Gentleman.Jack.Darby]

11 hours ago, AlwaysRt said:

How is it better that the IRS can't punch me in the face with their right hand, they have to use their left hand? My face still hurts...

Same as we should all feel great as the lottery (pick one) has now raised over $1 Billion for educating our children (what they don't do is finish the sentence... while we cut $1 Billion for education spending from the general fund so we can do stupid projects that benefit us, our friends, and our political contributors.)

Well, my personal viewpoint is that when it comes to taxes, the alternatives are "better" and "poor".

It's better because, in the final analysis regarding Obamacare "shared responsibility payments", by Congress limiting the IRS ability to actively collect them using liens and levies as they can do with income taxes, Congress gave individuals a method to not pay them by not having a federal income tax refund. It may not be perfect but, as is always the case with taxes, it's "better" than what could have happened and, in my book, isn't "poor", so it's a win for the little guys.

There are some people who deliberately have their employers withhold too much federal income tax from their pay because they like to get a large income tax refund after filing their annual income tax return to, for example, make a large purchase, in essence making an interest-free loan to the U.S. government because they are unable or unwilling to save on their own.

I understand why people do it but, in the end, whether it boils down to an unwillingness to periodically review their taxes to ensure that their withholding approximates their tax liability or the lack of discipline to save on their own, it's still poor tax planning.

And governments and businesses routinely take advantage of those who make poor decisions.

And if the rumoured "overhaul" of Obamacare actually happens, I hope that those implementing the overhaul ensures that those with unpaid "shared responsibility payments" prior to the effective date of the overhaul are totally relieved of them.