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#81
08-23-2006, 10:23 AM
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Re: paying taxes
is a SEP generally what you do after you are no longer qualified to deposit in your roth?
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#83
08-23-2006, 10:37 AM
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Re: paying taxes
If you have the income to put away the entire 44k, then it is very likely that your AGI would be too high to allow a Roth contribution. Also, you can't do both because the 44k limit is the limit for all retirement contributions for an individual.
The magic number for a SEP is 220k of income because you have to deduct the amount of the contribution from your income. Yes, that does create a circular calculation. The result of the circular calculation is that your 25% contribution becomes an effective 20% contribution.
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#84
08-23-2006, 10:38 AM
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Re: paying taxes
[ QUOTE ]
[ QUOTE ] Oh, and fish2p2, if you're earning outside the US, the US doesn't tax you until you earn 80k+. [/ QUOTE ] I'm fairly sure this isn't true for gambling income. [/ QUOTE ] How is gambling income different? Im curious.
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#85
08-23-2006, 12:57 PM
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Re: paying taxes
[ QUOTE ]
[ QUOTE ] [ QUOTE ] If you are a born a US Citizen, the only way to avoid taxation is to renounce your citizenship or die. If you do the former, you can never return to the USA. [/ QUOTE ] False. [/ QUOTE ] This is the type post that drives me out of my mind. If you think I am wrong (which I am not) then please explain your position. [/ QUOTE ] I apologize for being unclear. The second sentence is the one that is false. It absolutely is possible to renounce US citizenship and subsequently visit the US. You will be treated like any other foreign visitor, unless of course you stiffed the IRS on your way out, in which case you may indeed have trouble getting back in.
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#86
08-23-2006, 01:56 PM
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Re: paying taxes
starbird,
When you give up US citizenship, do your tax obligations end after that year. For example, you give up your citizenship in Aug 06. You are obligated to pay up until that date, the entire 06 tax year, or an even longer period of time? http://travel.state.gov/law/citizens...nship_777.html You are corrct that it is possible to return to the USA, which does surprise me since 50 years ago you couldnt even hold dual citizenship in the USA.
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#87
08-23-2006, 02:09 PM
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Re: paying taxes
[ QUOTE ]
starbird, When you give up US citizenship, do your tax obligations end after that year. For example, you give up your citizenship in Aug 06. You are obligated to pay up until that date, the entire 06 tax year, or an even longer period of time? http://travel.state.gov/law/citizens...nship_777.html You are corrct that it is possible to return to the USA, which does surprise me since 50 years ago you couldnt even hold dual citizenship in the USA. [/ QUOTE ] fish - the following is a quote from the article in your last post: "Persons considering renunciation should also be aware that the fact that they have renounced U.S. nationality may have no effect whatsoever on their U.S. tax or military service obligations." If memory serves me correct, I think the IRS expects you to continue paying taxes for 5 years after you end your citizenship, even if you are living and working in a foreign country. At least the IRS is a very fair, generous group of guys.
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#88
08-23-2006, 02:18 PM
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Post deleted by Mat Sklansky
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#89
08-23-2006, 03:33 PM
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Re: paying taxes
[ QUOTE ]
[ QUOTE ] is a SEP generally what you do after you are no longer qualified to deposit in your roth? [/ QUOTE ] Why would you not be qualified to deposit in your Roth? A SEP is for people who are self-employed. [/ QUOTE ] broiler had a knowledgable post, but anyways, you are no longer eligible for a Roth once your income passes something like $110k. You are then only left with SEP-IRA (or SE 401k).
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#90
08-23-2006, 04:04 PM
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Re: paying taxes
[ QUOTE ]
[ QUOTE ] starbird, When you give up US citizenship, do your tax obligations end after that year. For example, you give up your citizenship in Aug 06. You are obligated to pay up until that date, the entire 06 tax year, or an even longer period of time? http://travel.state.gov/law/citizens...nship_777.html You are corrct that it is possible to return to the USA, which does surprise me since 50 years ago you couldnt even hold dual citizenship in the USA. [/ QUOTE ] fish - the following is a quote from the article in your last post: "Persons considering renunciation should also be aware that the fact that they have renounced U.S. nationality may have no effect whatsoever on their U.S. tax or military service obligations." If memory serves me correct, I think the IRS expects you to continue paying taxes for 5 years after you end your citizenship, even if you are living and working in a foreign country. At least the IRS is a very fair, generous group of guys. [/ QUOTE ] I actually read up on this after reading this thread the other day. The laws are actually quite severe. If you make over 100K per year or have assests of over 500K, it is assumed by the IRS that the reason you are renouncing your citizenship is to evade taxes, and your income is subject to taxation for the next ten years. It is possible to get around this if you present a case providing valid reasons why you are renouncing citizenship, and though I'm not entirely familiar with KKF's situtation I get the sense that these would not really apply to you.
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