Your Tax Question - 052

Dear John, I just got home from India where I have worked for the last year. What will happen on my taxes? Thank you so much, Cal.

---

Hi Cal,

In order to not tax a taxpayer twice Congress allows you to take a Credit or a Deduction. The credit is usually the best route because it reduces your U.S. tax liability dollar for dollar where the deduction just reduces the amount of income that is taxable. Determine which is best for you according to the facts of your own individual case. See page 21 of the 1040 instructions for more information.

You know, I can help you with this - I'm just saying...

Happy New Year!!!

John

PS. Did you see that I am offering single moms a deal this year? I will do their taxes for $69.99 complete. That's all the forms necessary and eFile for just $69.99. It's just my small way of helping our single moms.

Your Tax Question - 035

Dear John, I have money saved in an off shore account and I am told that I now have to report that money. Is this true? Thanks, Jim
---
Hi Jim,

The treasury requires that you report to the government if you have $10,000 in total transactions, interest in, or balance of any signature foreign accounts. Unless of course you are a banker, but if you are a regular old Joe then you are required to file form Form TD F 90-20.1.

I will leave my opinion of this to the political pundits...

John

PS. I still have slots available in my client list if you are interested. Email me