NurseJules

Mar 6 2009, 11:29:16 PM

After all my concerns and almost passing out from reading Tax Jurisdiction mumbo jumbo, my dad took all my questions to his personal accountant in the states. She filed another extension for me until October 15 and said it will be much easier to file and complete once I file my Aussie Tax Return in July. So this is what I'm going to do now...

aroth

Mar 17 2010, 11:02:06 AM

So here's a question, hope it hasn't been asked before. Let's say that when I move to Australia, I keep my current job with my U.S. based company (I'm a software engineer, and can do my job from pretty much anywhere that has Internet connectivity). In essence, I would be a U.S. citizen employed by a U.S. company, living abroad. If it makes any difference, I would leave payroll set up to deposit my paychecks into my U.S. bank account, exactly as it is now.

In such a case, who do I primarily owe taxes to (as in, which do I pay first, and which do I claim a "foreign income tax" exemption from)? Would it be to Australia, because that is where I am living, or would it be to the U.S., because I'm still a U.S. citizen employed by a U.S. company. I guess the question is, do federal taxes follow your residency, or do they follow your employer?

amomentadrift

Apr 11 2010, 11:43:56 PM

When I file my 2009 tax return - I understand that I can file as Married Filing Jointly or Married Filing Separately - but in order to file jointly, I would have to get a US Tax File Number for my wife.

Here's a few questions for my situation:

1. I did an internet / IRS website search to determine how to get my wife a Tax File Number - but couldn't really peg down how to do this. Given our relatively simple tax situation - is there really any benefit to filing jointly?

trix

Apr 12 2010, 12:20:50 PM

You DO NOT need to get an itin number for your wife. Simply put down Non-resident alien in that space. Others (even on this forum) will argue this, but I have done it for years.

macaussie

May 23 2009, 06:04:50 PM

Just to add something into the mix...I have and will always be filing US tax because one has to do that as a US citizen, but I am also an Aussie citizen and resident. I filed my US 2008 taxes in April '09 this year using an agent that I have used for years in California.

Now I am residing in Australia, I have just filed my first ATO tax form for 2007-2008, used an agent and got an extension so I could pay after my '08 US filing. My agent here and I had to do a lot of research. It has been a headache as not many agents in my area have experience with a US pension.

I get a CALSTRS pension so it does not qualify for ATO exemption under Article 19 of the ITA Agreement (government) but does qualify under Article 18 (SS and public pension) because it is a "public pension". So I do not pay Aussie tax as it is exempt income, but do pay a small medicare surcharge.

However, I recently cashed in an IRA and fill have to include that in my ATO form next year and get a foreign tax credit for US taxes paid and probably pay some Aussie tax on it. Annuities,IRAs and most other pensions are taxed here first then the US second is the way I understand it. So most folks would get a tax credit in the US and not pay any more taxes because the rate there at the moment, is usually less than here!

escameron

Mar 9 2011, 01:20:29 PM

Hello to all previous contributors,
I'm a US citizen hopefully moving to Oz in Sept. with my US/Aussie citizen husband if my visa goes through. I also hope this isn't a silly question but since H&R Block is a US company (as I understand) can they do both tax returns through them as once? That's what I was naively thinking but some confirmation would be great
Thanks!