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Recent International Tax questions

My question is: My mother is here in the U.S. and she is a

Hi there, my question is : My mother is here in the U.S. and she is a green card holder. She has an income CAPI (Cash Assistance Program For Immigrants ) which is right now $835.00 a month. She also has her retirement plan in Romania which is a citizen of. We sent out legal documents to a friend of ours in Romania, over the years to pick up her monthly retirement from the bank there, which is roughly $150 a month. Now the bank sent a letter to our friend, addressed to my mother ( they did not ever realized that is not her address, since she is not living in Romania ) asking to send them a W9 OR W8BEN. Well, my mother's income is below $10000 US dollars a year, so I don't think she needs to fill out anything. Also she never done taxes, because CAPI is not taxable, nor need to be listed, and I claim her every year, since she lives with me, she is handicapped and I am her caregiver. Does she need to fill out any forms, or I need to inform the bank that she is not in any of those brackets ? We don't want the bank in Romania to give our friend a hard time when she will try to pick up her retirement money. Thank you !

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

20,572 satisfied customers
This question is for a tax specialist or tax attorney--in

This question is for a tax specialist or tax attorney--in particular, someone who is familiar with international tax obligations for U.S. citizens, and 1040 Schedule B.About seven and a half years ago, when I was a student (and later a volunteer teacher) in China, I opened one, possibly two, local bank accounts--both checking accounts. When I left China, about six and a half years ago, I emptied most of the money out of the account(s) (possibly all, I'm not sure), but did not actually close the account(s). At most, I left $100 in them--probably less. I do not know whether the account(s) earned interest. Since leaving China, I have done nothing with the account(s), and do not even know if they are still open (though I intend to try to find out).It has come to my attention that I may have had an obligation to disclose the existence of the account(s) in my taxes. The amount of money in both accounts is very small, so neither FBAR or IRS Form 3898 are relevant, but reading 1040 Schedule B, it seems like there may be an independent obligation to disclose any foreign bank account, even if there is no money, or an extremely small amount of money in it. I have a few questions related to this concern:(1) Was I required to disclose the existence of the Chinese account(s) by filing a Schedule B? If so, was I required to do so for every year since I opened the account(s)? (It's not entirely clear to me whether Schedule B must be filed if there is a foreign bank account, but no interest earned over $1,500, as is the case here.)(2) If indeed the account(s) earned interest, was I required to disclose that on Schedule B, or is it enough just to disclose that the accounts exist? (If there was any interest earned, it was extremely small; likely around $5 total).(3) What do I do now? Should I file amended taxes as far back as I am able, including a Schedule B? What, if anything, do I need to do about pre-2013 taxes that did not disclose the account(s)? Is there any possible exposure to penalties?(4) What do I do if I'm unable to get any information regarding the bank accounts? (I know the names of the banks, but, as these were local Chinese accounts, I think it's fairly likely that there will be no/inadequate records of how much money was in the accounts, whether they earned interest, and when the accounts were closed due to inactivity (if they were closed)).I know this seems likely a tiny, insignificant issue/amount of money, but I want to make sure I'm fully compliant. Thanks.

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Robin D.

Vocational, Technical or Trade School

23,332 satisfied customers
I am a UK citizen on a J1 visa. I have a 401k account in the

I am a UK citizen on a J1 visa. I have a 401k account in the US. I will leave the US in 2017. The US will withhold 30% tax on my 401k. Since there is a treaty between the US and the UK, can I claim some of the 30% tax back?JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?Customer: I will be a UK resident for tax purposes when I withdraw the 401k

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Robin D.

Vocational, Technical or Trade School

23,332 satisfied customers
I have a student loan balance of around $132,000. I have a

I have a student loan balance of around $132,000. I have a Stafford Plus loan at an interest rate of 6.8% and a Direct Plus loan at an interest rate of 7.9%. I continue to make payments, as I have every month this past year in 2016, so I know I am eligible for a tax deduction of around $2500, since my modified adjusted gross income was less than $80,000. I have a few questions:1.) A gracious, and very wealthy, relative that lives overseas who is NOT a USA citizen wants to make a monetary gift over the course of 1 year, starting in 2017, to pay off my full balance of student loans. I understand parents are allowed to gift $14,000 each (combined 28,000/calendar year). Can my relative send money to my student loan vendor directly? Or will he have to gift it me, then I pay my student loan vendor?2.) I understand there is not tax incurrend on the giftee, but there there is one on the gifter. I did not know if this applied to non-US citizens.3.) Furthermore, I was told by another financial advisor that I am gifted above $28,000 I will have to file a form with the IRS.4.) My uncle, who wants to pay off the amount, wants to know what is the max amount he can give without incurring a large amount of tax? He can break the payments over a couple years if he is only allowed to gift me a certain amount.5.) If he decides to gift my parents, who both decide to gift me with the money they receive, should I pay off my student loans over a course of several years to avoid having my parents lifetime limit of monetary gifts given to me?6.) I want to know the best way to pay off my loans, so please advise the right way to go about it with the IRS.7.) I will qualify for a tax deduction for 2016 since I made payments every month of the year. If my loans are paid in full by the end of 2017, can I claim the tax deductions on my 2017 return or will this not be allowed?Thanks!

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taxmanrog

Master's Degree

1,148 satisfied customers
I am a non-resident alien (based in Egypt) and performing

I am a non-resident alien (based in Egypt) and performing software development/consulting services for a US client on a monthly retainer fee basis.My work is being performed entirely from outside the US (thus it's foreign source income).My client will transfer my monthly retainer fee to my bank account in the US.I have already been advised that such payments would not be taxable. Now, how can I convince my client of not withholding any tax at source and to simply transfer to me the whole amount? What paperwork do I need to complete?

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

20,572 satisfied customers
I have a question about international taxes. There's a rule

I have a question about international taxes. There's a rule about the tax exclusion if you've worked in that country for over 330. is that during any 12 month period as long as PART of it is in the tax year or do all 330 days have to fall within the tax year? I'm confused.

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Lane

JD, MBA, CFP, CRPS

Doctoral Degree

20,572 satisfied customers
Trying to figure out the tax treatment of payment we

Hello,Trying to figure out the tax treatment of payment we made to acquire a non-exclusive transferable fully paid-up license on trade secrets.We bought this license in 2015 for a lump sum (so not making any royalty payments).From what I gathered so far - it should be treated as license for taxes, i.e. annual royalties should be deducted as business expense each year. BUT how to treat the lump-sum payment? Should it be fully deducted as business expense in the year of acquisition or somehow depreciated? It's not section 197 intangible, so not sure what method of depreciation should be used and what useful life we should use to depreciate?Thank you!

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Robin D.

Vocational, Technical or Trade School

23,332 satisfied customers
I was a bonafide resident of Thailand from 20-Dec-2000 to 16-Jan-2014.

I was a bonafide resident of Thailand from 20-Dec-2000 to 16-Jan-2014. I write books, and continue to receive royalties from books that I wrote while a foreign resident. I deducted royalties received from those books on my 2014 return. Can I continue to deduct them - royalties received from books written while overseas prior to 2014, but received in 2015 - on my 2015 return?JA: The Accountant will know how to help. Anything else I can tell the Accountant before I connect you two?Customer: I think that's it.JA: I'm sending you to a secure page on JustAnswer so you can place the $5 fully refundable deposit now. While you're filling out that form, I'll tell the Accountant about your situation and connect you two.

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Lev

Retired

Bachelor's Degree Equivalent

24,418 satisfied customers
I have a perhaps a complicated international tax question -

HelloI have a perhaps a complicated international tax question - I inherited a property in India from my father - who willed it 50/50 to my brother ( who is also in the US) and I. My brother has power of attorney to sell the house in India and will be paying taxes (30%) after sale in India. He will be repatriating the proceeds to the US and then transfer 50% to me. My question is - will I need to pay taxes here for the inheritance ? If so, what are the alternatives if any ?Appreciate your expert opinion.Thank You, LS

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emc011075

Tax advisor and Enrolled Agent

Bachelor's Degree

5,216 satisfied customers
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