Filing US taxes after moving to Australia

Go Back   Expat Forum For People Moving Overseas And Living Abroad > Australasia > Australia Expat Forum for Expats Living in Australia

Australia Expat Forum for Expats Living in Australia Have you moved to Australia from another country? Are you thinking about making Australia your new home? Want to meet others like you and discuss immigration, property, sport, socialising, food, cars, insurance, laws, taxes and anything related to Australia?

Filing US taxes after moving to Australia


Reply
 
Thread Tools
  #1 (permalink)  
Old 8th January 2009, 12:35 AM
Member
 
Join Date: Jan 2009
Location: Mornington Peninsula
Posts: 178
Rep Power: 0
interplanetjanet is on a distinguished road

Users Flag! Originally from usa. Users Flag! Expat in australia.
Default Filing US taxes after moving to Australia

My husband and I moved to Australia a few months ago after living in the US for the last few years. I'm trying to sort out how to do our 2008 US taxes. I'm a US citizen, and he's an Australian citizen. It's my understanding that Australia has no tax treaty with the US, so technically as a US citizen I should be double taxed on any income earned in Australia

As a US citizen, I'm obliged to pay US taxes even while living abroad, however I'm not working in Australia (I was in the US). Since my husband isn't a US citizen, I think he should have no obligation to pay taxes in the US on his Australian income. I'm guessing that it should be sufficient for us to file separately so as to avoid having to pay US taxes on the income he earned in 2008 in Australia. Then I would just pay taxes on my US income (since I have no Australian income), and he would pay taxes in the US on his US income and in Australia on his Australian income.

Anyone have any experience with this? If so, does what I said above work?

Thanks in advance for any help!

Reply With Quote
  #2 (permalink)  
Old 8th January 2009, 12:41 AM
Dolly's Avatar
Moderator
 
Join Date: Feb 2008
Location: Mornington Peninsula VIC
Posts: 4,609
Rep Power: 8021
Dolly has a reputation beyond reputeDolly has a reputation beyond reputeDolly has a reputation beyond reputeDolly has a reputation beyond reputeDolly has a reputation beyond reputeDolly has a reputation beyond reputeDolly has a reputation beyond reputeDolly has a reputation beyond reputeDolly has a reputation beyond reputeDolly has a reputation beyond reputeDolly has a reputation beyond repute
390 likes received
54 likes given

Users Flag! Originally from england. Users Flag! Expat in australia.
Default

Hi there,

Welcome to the forum (and I love your username!).

Sorry I can't help re the tax situation, hopefully another member will be able to give you some advice.

I noticed your location is Mornington Peninsula, so is ours.... we're in Frankston South.

Dolly

Reply With Quote
  #3 (permalink)  
Old 8th January 2009, 12:54 AM
Member
 
Join Date: Jan 2009
Location: Mornington Peninsula
Posts: 178
Rep Power: 0
interplanetjanet is on a distinguished road

Users Flag! Originally from usa. Users Flag! Expat in australia.
Default

Hi Dolly! Thanks for the welcome.

Yes, we're currently about 20 minutes south of Frankston, but we're moving to Bonbeach in the next couple weeks. Hi neighbor!

Reply With Quote
  #4 (permalink)  
Old 8th January 2009, 01:01 AM
amaslam's Avatar
Member
 
Join Date: Sep 2008
Location: Northern Beaches (Sydney), Australia
Posts: 3,378
Rep Power: 1408
amaslam has a reputation beyond reputeamaslam has a reputation beyond reputeamaslam has a reputation beyond reputeamaslam has a reputation beyond reputeamaslam has a reputation beyond reputeamaslam has a reputation beyond reputeamaslam has a reputation beyond reputeamaslam has a reputation beyond reputeamaslam has a reputation beyond reputeamaslam has a reputation beyond reputeamaslam has a reputation beyond repute
35 likes received
3 likes given

Users Flag! Originally from usa. Users Flag! Expat in australia.
Default

Hi:

I'm a U.S. Citizen. Australia does have a tax treaty with the US and you will not be double taxed . Here is the link:
Australia - Tax Treaty Documents

You are obliged to "file" a tax return every year as you are an American Citizen, however there are exemptions (first $80000 US) so you don't always 'pay' tax.

I recommend reading this document from the IRS:
U.S. Citizens and Resident Aliens Abroad

I really recommend you consult a tax professional. If your husband has ever been a Permanent Resident of the US then he must also file. In Australia I went with H&R Block for the first year as they did the tricky partial year calculations (i.e. 44/365 * deduction or 44/365 * income, etc.).

Good luck

***
And it's true what they say about two certain things in life: death and -----

Quote:
Originally Posted by interplanetjanet View Post
My husband and I moved to Australia a few months ago after living in the US for the last few years. I'm trying to sort out how to do our 2008 US taxes. I'm a US citizen, and he's an Australian citizen. It's my understanding that Australia has no tax treaty with the US, so technically as a US citizen I should be double taxed on any income earned in Australia

As a US citizen, I'm obliged to pay US taxes even while living abroad, however I'm not working in Australia (I was in the US). Since my husband isn't a US citizen, I think he should have no obligation to pay taxes in the US on his Australian income. I'm guessing that it should be sufficient for us to file separately so as to avoid having to pay US taxes on the income he earned in 2008 in Australia. Then I would just pay taxes on my US income (since I have no Australian income), and he would pay taxes in the US on his US income and in Australia on his Australian income.

Anyone have any experience with this? If so, does what I said above work?

Thanks in advance for any help!

Reply With Quote
  #5 (permalink)  
Old 8th January 2009, 06:07 AM
Bevdeforges's Avatar
Super Moderator
 
Join Date: Nov 2007
Location: deepest, darkest Essonne
Posts: 23,908
Rep Power: 20
Bevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond reputeBevdeforges has a reputation beyond repute
2290 likes received
98 likes given

Users Flag! Originally from usa. Users Flag! Expat in france.
Default

Hi - actually, even if there isn't a tax treaty between the US and Australia, you won't be double taxed. You are entitled to the Overseas Earned Income Exclusion on all earned income while living outside the US. The form for this is 2555 and the instructions pretty much explain how it all works.

OK, if you only moved to Australia a few months ago, you may want to file for an extension until you hit your one-year anniversary in Oz because that's when your Overseas Earned Income Exclusion kicks in. (The alternative is to file as usual - though being overseas on April 15 means you have until June 15th to file - and then file an amended return to claim back any double taxation after you qualify for the exclusion. Filing the extension is an easier alternative.)

Go to the IRS website and find publication 54 (or order a copy from the IRS) for more than you ever wanted to know about filing from overseas. If you husband has a green card, he will also have to continue to file US taxes. In the year you left the US, you have the option to file jointly. After that you will probably want to consider filing separately, especially if he is now a "non-resident alien."

The US Consulate sometimes sponsors VITA tax services (volunteer services that won't cost you) or can provide copies of pub 54. You shouldn't need to pay for tax filing assistance unless your financial affairs are fairly complex, but it's that first return after moving abroad that is the head-banger. Feel free to pose any questions here and we'll do our best.
Cheers,
Bev

Reply With Quote
  #6 (permalink)  
Old 8th January 2009, 08:59 AM
canuckinqld's Avatar
New Member
 
Join Date: Jan 2009
Location: Queensland Australia
Posts: 7
Rep Power: 0
canuckinqld is on a distinguished road

Users Flag! Expat in australia.
Cool

Hi, just a quick comment...the others have given you more specific advice.
I am a Canadian and believe me taxes are a nightmare!! I still own property in Canada so really got dinged in tax for 2007. My suggestion to you is find a tax professional in the US who is an expert on foreign earnings..not just someone who says that they are!! I learned that the hard way.
The complicated part about taxes is that Australia is on a July to June year and we in Canada and US are on a Jan to Dec year.
I now have an accountant in Canada to help me file. Here in Australia it was so simple and staightforward that I did it online.
Good luck with that issue, and I hope you enjoy living here. I do!
Jo

Reply With Quote
  #7 (permalink)  
Old 13th January 2009, 12:15 PM
Member
 
Join Date: Jan 2009
Location: Mornington Peninsula
Posts: 178
Rep Power: 0
interplanetjanet is on a distinguished road

Users Flag! Originally from usa. Users Flag! Expat in australia.
Default

Thanks very much for all the replies! I'll definitely talk to a tax person here. You've convinced me.

Reply With Quote
  #8 (permalink)  
Old 2nd April 2009, 02:27 AM
Member
 
Join Date: Jan 2009
Location: Mornington Peninsula
Posts: 178
Rep Power: 0
interplanetjanet is on a distinguished road

Users Flag! Originally from usa. Users Flag! Expat in australia.
Default

Quote:
Originally Posted by amaslam View Post
I really recommend you consult a tax professional. If your husband has ever been a Permanent Resident of the US then he must also file. In Australia I went with H&R Block for the first year as they did the tricky partial year calculations (i.e. 44/365 * deduction or 44/365 * income, etc.).
Can you please tell me which H&R Block you used? I just rang the location closest to me, and the woman I spoke it insisted that no H&R Block in Australia does US taxes.

Reply With Quote
  #9 (permalink)  
Old 2nd April 2009, 03:27 AM
canuckinqld's Avatar
New Member
 
Join Date: Jan 2009
Location: Queensland Australia
Posts: 7
Rep Power: 0
canuckinqld is on a distinguished road

Users Flag! Expat in australia.
Default taxes

Quote:
Originally Posted by interplanetjanet View Post
Can you please tell me which H&R Block you used? I just rang the location closest to me, and the woman I spoke it insisted that no H&R Block in Australia does US taxes.
Sorry if I was misleading. I used HR Block in Canada. That was last year, this year I have an accountant in Canada because the HR block advice cost me thousands. Good luck. Jo

Reply With Quote
  #10 (permalink)  
Old 2nd April 2009, 04:15 AM
Member
 
Join Date: Jan 2009
Location: Mornington Peninsula
Posts: 178
Rep Power: 0
interplanetjanet is on a distinguished road

Users Flag! Originally from usa. Users Flag! Expat in australia.
Default

Oh no, that was amaslam I quoted! He said he used H&R Block in Australia.

Reply With Quote
Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Filing US Taxes canmc Expat Tax 76 23rd December 2011 07:54 AM
Filing US Taxes from Canada Militaryman Expat Tax 8 17th October 2011 03:13 PM
USA/Canada: Filing Taxes tdcush Canada Expat Forum for Expats Living in Canada 4 5th March 2010 04:38 AM
Filing US taxes jettony Dubai Expat Forum for Expats Living in Dubai 1 9th February 2010 04:27 PM
taxes, wills and filing peppera-ann- Britain Expat Forum for Expats Living in the UK 2 24th November 2009 12:28 PM

LEGAL NOTICE
By using this Website, you agree to abide by our Terms and Conditions (the "Terms"). This notice does not replace our Terms, which you must read in full as they contain important information. You must not post any defamatory, unlawful or undesirable content, or any content copied from a third party, on the Website. You must not copy material from the Website except in accordance with the Terms. This Website gives users an opportunity to share information only and is not intended to contain any advice which you should rely upon. It does not replace the need to take professional or other advice. We have no liability to you or any other person in respect of any content on this Website.
FORUM PARTNERS

ExpatForum.com is owned and operated by VerticalScope Inc.

Retiring Overseas Guides | Moving Overseas Guides | Cost of Living | Health Care Guides


All times are GMT. The time now is 01:03 PM.


Powered by vBulletin®
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Search Engine Friendly URLs by vBSEO