Hello, I need some advice/pointers to file for tax:

Situation: I was employed and was working in the US since Jan 1, 2004. I then took a job Overseas in Germany as a DOD Civilian on May 25, 2004 (my first day in Germany). I do not have to pay any FEDERAL TAX while I'm working here in Germany up to $80K. I do still pay FICA and Medicare taxes.

So my question is, will I only have to claim taxes from Jan 1, 2004 - May 24, 2004?, but still show my entire income for the whole year?

or

Do I just base my income from Jan 1, 2004 - May 24, 2004, since the rest is tax exempt?

Is 7 months enough to claim Germany as my "Tax Home", in which I believe I can exempt the entire 2004.

Thanks ahead for any advice or pointers.

/QT

 

Probably not helpful but I would engage a CPA.

I worked overseas for a financial service company for 11 months (Nov -> Sept), my taxes were a complete mess. It took 3 years for all the various carry-over debits/credits to wash through. All situations are different - - - the one constant is complexity.

A good CPA will be able to navigate for you and it shouldn't cost you an you a bundle. You'll save in the end because you won't have the IRS knocking at your door for extra tax or penalties.

Just my .02 - - - Michael

 

who says your income is exempt? You may be confusing that with the foreign income exclusion, in which there is a maximum amount that can be excluded. Generally, US citizens pay tax on ALL earnings earned anywhere in the world, but there are some breaks available. Too much to go into here, but you have a complex return to figure and you need to see a professional. Get referrals from others in the same boat that have "been there".