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filing U.S. tax forms

*Anne*
post 10.Mar.2006, 11:29 AM
Post #1


Hi,
I'm a U.S. citizen who has worked in Sweden and am a 'bona fide' resident for the entire 2005 tax year. Sweden is my tax home and I have worked the entire year for a Swedish company. I am about to file a 1040 and a 2555 (Foreign Earned Income Exclusion). Should I also file a 1116 for foreign tax credit ? And is there any other form I should file? Finally, can I file a 1098-E to get credit for Student Loan Interest Payment if I have earned no U.S. taxable income? Cheers, Anne
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Ezpen The Caveman
post 10.Mar.2006, 11:59 PM
Post #2
Joined: 27.Oct.2005

Are you going to file the tax form or fill out the tax form???
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*Anne*
post 12.Mar.2006, 02:47 PM
Post #3


I am filling in the form, and then sending it to be filed. In order to file, one must fill it in first.
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Braderunner Rennuredarb
post 13.Mar.2006, 09:38 AM
Post #4
Location: Not in Sweden
Joined: 24.May.2005

Anne - best bet is to talk to a accountant...honestly...that way they burn instead of you if they screw up...
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Mike
post 13.Mar.2006, 09:51 AM
Post #5
Joined: 14.Mar.2005

If all of your income was earned in Sweden, and it's under $80K, then all of it is exempt from US taxes and you cannot claim the 1116.

You should also know, there's a 2555 EZ, which is easier to fill out.
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*Brathair / Don't Be Lagom*
post 13.Mar.2006, 10:56 PM
Post #6


You should ask the company you work for if they will pick up the tab for a US accountant that specializes in your situation. My Swedish company always picked up this expense, but of course I had to pay taxes on it as if it were income. My US returns were always 40-50 pages in length, no way do I have the patience to put that thing together. Another option is to do some due diligence on TurboTax and determine if it is adequate for your needs.
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Alice Is Back
post 13.Mar.2006, 11:11 PM
Post #7
Joined: 15.Jan.2006

QUOTE (Mike)
If all of your income was earned in Sweden, and it's under $80K, then all of it is exempt from US taxes and you cannot claim the 1116.

You should also know, there's a 2555 EZ, which is easier to fill out.


mike is right but since 2 yrs ago they did this stupid law so that the $80,000 is multiplied against the number of days you were outside of the country. So if you spent a total of three months in the US you only get $60,000 deductable. But I also thought that all the taxes payed in Sweden (or Germany in my case) will be counted against the final tax bill. Therefore nobody in western europe would need to pay US taxes anyway (except for low tax countries like in Switzerland). I still find filing American and German taxes each year a pain in the ass though. But since I earn less than $80,000 a year it is a lot easier for me. I think it was the worksheet 2555 EZ I used, it cannot be combined with a 1040 EZ, but with a 1040.


Important is to file, esp. if you plan on getting a gov't job, they will check for these things!
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*Brathair / Don't Be Lagom*
post 14.Mar.2006, 02:41 AM
Post #8


My accountant had the opinion that you must file every year, but everything over $120,000 would be required to pay tax on. I don't know how he did it, but he did.

Also of importance is knowing how to file your Swedish return (completely within the law of course), there are tons of advantages for an American (or other) filing in Sweden. The amount of deductions are truly incredible. Any American should look into this in detail, you can literally save thousands of dollars if you know what to look for.
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