I am using Turbo Tax
since it is one of a handful that allow U.S. citizens to file electronically with residential address in a foreign country.
I closed a business in the tax year 2011 (with an EIN). However, I received commissions/payments that I did not expect under the business name (sole proprietorship) and recently received a 1099-Misc with my name, a Maine Address, and the recipients number field includes the EIN in the format of SSN (xxx-xxx-xxx vs xx-). This is my only U.S. derived income and I meet the bona fide residence test for another country.
- Do I file a schedule C, with 0 expenses or what is the appropriate manner to handle this? My understanding is that requesting an amendment to this form from the is is potentially an option, but eliminates the e-file option, and likely only complicates the matter. I do not want to end up with an audit (like anyone). Thus is filing a schedule C with 0 expenses (this as my only income for the now closed business [closed last tax year] ) the appropriate action??????
- Does this require to file a state return? I purposely cut off ties with all states in the U.S. to avoid such. However, does the 1099-misc with a Bangor address require me to now file a state tax form? This is a huge price tag if such is the case since I then likely owe an income tax
on all my foreign income earned to a state that I posses no ties (with exception to the information submitted on this form)???
I own a few shares in a traditional IRA that are part of a trust. The brokerage furnishes information to the IRS on this (I cannot recall the for name). Do I need to report this anywhere? I receive no income from this since it is all in an IRA, but do I owe taxes or need to report any type of information associated with this???
Please let me know if you need further information to appropriately answer all my questions. I already reviewed the IRS site in a fair amount of detail, but this is not my area of expert or profession.Hence, the reason for asking a professional or advice. Thanks in advance for your help.