Posted On: Saturday - July 18th 2020 5:56PM MST
In Topics: Globalists US Feral Government
This is at the top of the 2019 tax-year 1040 form.
I noticed a number of things while filling out the income tax forms on or about the 15th of July. (You can't prove I didn't finish on the 15th, not in a court of law you can't!) I think there are 2 more posts coming on this, but today I just want to point out one small change.
I saw the last line in the graphic above, a place for one's foreign country and such. Something clicked, so I checked. That was not on the form last year.* Very interesting! What's the deal here? Have enough tax-paying Americans gotten the hell out to where this line needed to be added? Was it an oversight before. Was this line added for the Globalist elites?
Although commenter Adam Smith is someone I think may have a great handle on this too (be glad to hear about it), from a website that reads fairly straight-forward and knowledge-full on this issue, Premier Offshore**, I got information that fits in with what I'd heard before about our lovely IRS: From their page on taxing of foreign income by different countries:
The only major nation that taxes its citizens (and green card holders) regardless of where they live is the United States. So long as you hold a U.S. passport or green card, the Internal Revenue Service wants its cut of your profits and capital gains.With the exception of the Philippines, I see we're in with a great crowd there!Some lists of countries that tax citizens and legal residents on their worldwide income include Libya, North Korea, Eritrea and the Philippines. The tax systems of these countries are not well developed and data is limited.The United States taxes all U.S. persons on their worldwide income. A U.S. person is a citizen, green card holder (who is a legal resident but not necessarily present in the United States), and residents. A resident is anyone who spends more than 183 days a year in the United States.
There's more to it, One can stay out of the US for 11 out of 12 months of a year (not on a monthly basis, but one must be away 330 days) and have ~ $102,000 excluded, which may suffice for lots of ex-pats.*** Failing that, one can obtain residency to avoid this same amount of money.
I'm no tax man or ex-pat advisor. My point here is that the IRS, as instructed by the US Congress, acts with an unmitigated gall that's not the norm throughout the world. They will not leave you alone unless you:
a) Renounce citizenship. It's not as simple as, say, getting a divorce in Islam-land, such as "I renounce thee, I renounce thee, I renounce thee!" One must pay an over $1,000 fee, and fill out paperwork.
OR
b) If you don't plan on ever coming back, it's a lot easier. Just leave no phone number or forwarding address and blow them off. Above all, don't let them sucker you into filling out that last line on the top of the 1040!
* I pull out the previous ones to see if I'm missing anything that will save me money, and more importantly, keep some money from flowing to the Feral Government.
** I just found this one with my duckduckgo search on this question. I am not fixing to move to S. America at this point in time or anything like that.
*** Don't confuse the >183 days (1/2 a year) in America - with the 330 days (as in < ~ one month in America). The former is for definition of a "resident", while the latter is about the exemption on that $102,000.
Comments:
The Alarmist
Saturday - August 8th 2020 2:29PM MST
PS
It costs $2,350 and at least a day of your life getting in front of a consular officer to renounce your citizenship, and there are bunch of hoops to jump through. You used to be able to simply let your citizenship fall away (loss of nationality), but the State Department seems to have an indefinite hold on taking applications for a certificate to prove this to the IRS, since it seems to shortcut the process designed to make it hard to get away. Adding insult to injury, renouncing gets your name published in the Federal Register.
Using the $102k exclusion is a pain in the ass, as you need to keep detailed records of time spent and worked in the US to justify taking any if the credit. It is easier if most of your income was foreign earned and in a higher-tax country to use your foreign tax credit to offset your US income tax. If you have any US income at all, you will not offset all of your US tax liability, and there are re-sourcing rules that, depending on your facts, will shift some of your foreign-source income to US-source income, so you will almost always have some double taxation despite the existence of so-called treaties to prevent double taxation, which were really written for corporations, and in which the US always reserves the right to tax its citizens and residents as it sees fit despite what the rest of the treaty loftily says.
It costs $2,350 and at least a day of your life getting in front of a consular officer to renounce your citizenship, and there are bunch of hoops to jump through. You used to be able to simply let your citizenship fall away (loss of nationality), but the State Department seems to have an indefinite hold on taking applications for a certificate to prove this to the IRS, since it seems to shortcut the process designed to make it hard to get away. Adding insult to injury, renouncing gets your name published in the Federal Register.
Using the $102k exclusion is a pain in the ass, as you need to keep detailed records of time spent and worked in the US to justify taking any if the credit. It is easier if most of your income was foreign earned and in a higher-tax country to use your foreign tax credit to offset your US income tax. If you have any US income at all, you will not offset all of your US tax liability, and there are re-sourcing rules that, depending on your facts, will shift some of your foreign-source income to US-source income, so you will almost always have some double taxation despite the existence of so-called treaties to prevent double taxation, which were really written for corporations, and in which the US always reserves the right to tax its citizens and residents as it sees fit despite what the rest of the treaty loftily says.
Adam Smith
Monday - July 20th 2020 7:52AM MST
PS: Good morning Mr. Moderator...
Some of this plan, indeed most of this plan probably is not applicable to you in your situation. Many people rely on a job that requires a W-2 or 1099 as a condition of being employed. A plan like this would not work for everyone and it's very important to be setup properly before you journey down this path... It's perfectly legal to do your tax planning in advance to avoid incurring a tax obligation that will alert the taxman to you. Once you do incur a tax obligation it's probably best to pay up. Do keep in mind that it is not a crime to owe the IRS and perhaps a monthly payment plan is the best option for some people. I prefer not to owe anyone anything ever, so I would not feel comfortable operating this way.
But, you may find some of this useful to your situation, and of course, situations do change, so even if it's not applicable now, it may be one day. There are indeed ways to stay off their radar and avoid dealing with them altogether or at least minimizing your interaction with and obligation to them.
https://www.usacoinbook.com/us-coins/american-silver-eagle-dollar-bullion.jpg
$12,000 goes a long way in Appalachia.
Thank you for your continued effort fighting and documenting the stupidity.
☮
Some of this plan, indeed most of this plan probably is not applicable to you in your situation. Many people rely on a job that requires a W-2 or 1099 as a condition of being employed. A plan like this would not work for everyone and it's very important to be setup properly before you journey down this path... It's perfectly legal to do your tax planning in advance to avoid incurring a tax obligation that will alert the taxman to you. Once you do incur a tax obligation it's probably best to pay up. Do keep in mind that it is not a crime to owe the IRS and perhaps a monthly payment plan is the best option for some people. I prefer not to owe anyone anything ever, so I would not feel comfortable operating this way.
But, you may find some of this useful to your situation, and of course, situations do change, so even if it's not applicable now, it may be one day. There are indeed ways to stay off their radar and avoid dealing with them altogether or at least minimizing your interaction with and obligation to them.
https://www.usacoinbook.com/us-coins/american-silver-eagle-dollar-bullion.jpg
$12,000 goes a long way in Appalachia.
Thank you for your continued effort fighting and documenting the stupidity.
☮
Moderator
Sunday - July 19th 2020 1:36PM MST
PS: Copy your advice, Mr. Smith. Some of it is too late for me, of course, but I have friends who operate in this manner.
Oh, on your 2nd comment, maybe you saved someone's ass just in time, haha!
Oh, on your 2nd comment, maybe you saved someone's ass just in time, haha!
Moderator
Sunday - July 19th 2020 1:33PM MST
PS: Thanks for the informative comment, ExPat. That passport is the leverage, huh? It sounds like the US Feral Gov't needs to shakedown the whole world now in order to keep the yearly deficits under 1/4 of the budget.
This is why being an ex-pat is probably best for retirees, living off US dollars in cheap places like Mexico, C. America, and the Far East. This will only be best until the dollar takes a big dive - bound to happen. For you, it sounds like it was about a lady.
This is why being an ex-pat is probably best for retirees, living off US dollars in cheap places like Mexico, C. America, and the Far East. This will only be best until the dollar takes a big dive - bound to happen. For you, it sounds like it was about a lady.
Adam Smith
Sunday - July 19th 2020 12:12PM MST
PS: Afternoon again Mr. Moderator...
If you filled out a W-2 you should probably file a 1040.
Don't let them sucker you into filling out a W-2!
Sorry about the mix up.
☮
If you filled out a W-2 you should probably file a 1040.
Don't let them sucker you into filling out a W-2!
Sorry about the mix up.
☮
Adam Smith
Sunday - July 19th 2020 9:13AM MST
PS: Good afternoon Mr. Moderator...
Thank you for your kind words.
As I am but a humble Appalachian mountain boy who makes less than $12,000 annually I have not filed taxes in more than 20 years. April/July 15th is just like any other day in paradise.
The last time I had any correspondence whatsoever with the IRS was in February of 2012 when I received an EIN for the trust that I created for my cats and their offspring. The trustee has never filed taxes as the trust also earns less than $12,000 each year.
I'm not an expat and I have never had foreign income derived from any source, so I haven't had to deal with this aspect of the taxation scheme. However I would imagine that in some respects it is similar to the domestic parts of the tax code. A few things to remember...
• Everything the corporation masquerading as “government” learns about you, it will learn from you.
• All law is contract. Your right to contract is unlimited. Your right to uncontract is also unlimited.
• The IRS forms you sign are adhesion contracts whereby you volunteer to be a taxpayer.
• The IRS does not tax that which it does not know about.
• The tax scheme relies heavily upon voluntary compliance.
I know someone with a sizeable trust, with some serious assets. The trustee used to file taxes each year, only to report that it did not owe taxes. I advised the trustee that because the trust does not owe taxes there is no need to waste $1000 on an accountant, or the time to file. The trustee stopped filing taxes for the trust more than five years ago and the trustee has not heard a peep from the IRS or anyone else about it, because an entity does not have to file if it does not owe taxes.
I agree with you wholeheartedly that the “government”, congress and IRS do act with unmitigated gall that is less like a normal country should and more like what the mafia or a terrorist organization would.
You said:
“Above all, don't let them sucker you into filling out that last line on the top of the 1040!“
I would amend your sentence slightly...
Above all, don't let them sucker you into filling out a 1040 or 1099!
Amazon paid taxes in 2019 for the first time in years, probably for P.R. reasons. Amazon paid $162 million on $13.2 billion in pre-tax profit or about 1.2%. The federal corporate tax rate is 21%. Amazon reported $280.5 billion in total revenue in 2019.
As long as Amazon and other large corporations do not pay their fair share...
Well, you get the idea.
I hope you and the rest of our fellow stupids have a great day.
☮
Thank you for your kind words.
As I am but a humble Appalachian mountain boy who makes less than $12,000 annually I have not filed taxes in more than 20 years. April/July 15th is just like any other day in paradise.
The last time I had any correspondence whatsoever with the IRS was in February of 2012 when I received an EIN for the trust that I created for my cats and their offspring. The trustee has never filed taxes as the trust also earns less than $12,000 each year.
I'm not an expat and I have never had foreign income derived from any source, so I haven't had to deal with this aspect of the taxation scheme. However I would imagine that in some respects it is similar to the domestic parts of the tax code. A few things to remember...
• Everything the corporation masquerading as “government” learns about you, it will learn from you.
• All law is contract. Your right to contract is unlimited. Your right to uncontract is also unlimited.
• The IRS forms you sign are adhesion contracts whereby you volunteer to be a taxpayer.
• The IRS does not tax that which it does not know about.
• The tax scheme relies heavily upon voluntary compliance.
I know someone with a sizeable trust, with some serious assets. The trustee used to file taxes each year, only to report that it did not owe taxes. I advised the trustee that because the trust does not owe taxes there is no need to waste $1000 on an accountant, or the time to file. The trustee stopped filing taxes for the trust more than five years ago and the trustee has not heard a peep from the IRS or anyone else about it, because an entity does not have to file if it does not owe taxes.
I agree with you wholeheartedly that the “government”, congress and IRS do act with unmitigated gall that is less like a normal country should and more like what the mafia or a terrorist organization would.
You said:
“Above all, don't let them sucker you into filling out that last line on the top of the 1040!“
I would amend your sentence slightly...
Above all, don't let them sucker you into filling out a 1040 or 1099!
Amazon paid taxes in 2019 for the first time in years, probably for P.R. reasons. Amazon paid $162 million on $13.2 billion in pre-tax profit or about 1.2%. The federal corporate tax rate is 21%. Amazon reported $280.5 billion in total revenue in 2019.
As long as Amazon and other large corporations do not pay their fair share...
Well, you get the idea.
I hope you and the rest of our fellow stupids have a great day.
☮
ExPat Italy
Saturday - July 18th 2020 10:48PM MST
PS: As an expat living in Italy I can attest to this. Most people living overseas work as independent contractors and as a result, we must pay 15% on profits. Also, the communication with the IRS is ridiculous. They have sent me notices via regular mail on balances due and by the time I receive it, the due dates have long passed resulting in more penalties. On top of this, if one does not pay and accumulates a debt of $10,000 US, then the government will seize your passport until the debt is paid. Mind you, I earn Euro and this number is not inflation adjusted. So, this could be as little as €8000 depending on the currency rate. The connection between paying the IRS and seizing my passport does not exist and it is basically extortion. If you owe the IRS in the states, do they take your passport? I am also not willing to put property in my name because if I do and I sell it, I must pay the IRS on any profit. I am not willing to go through the process of getting my wife a visa because if I do, guess what? Yes, she is now liable to pay US taxes even if we don't live there. Renouncing is a very difficult concept. I don't hate America. I was in the US Army back between 1994-1997 and completed my contract with an honorable discharge. All I want is a fair system. Remember someplace it was written, no taxation without representation. Was it not the tax system of Britain that led to the Revolutionary War? It is a bit ironic. If one looks at the practices of the US system regarding many areas, the other countries that employ the same strategies are not the type of company the US should want to be in. MAGA.
Regarding your 2nd paragraph, it gets pretty complicated in the end. I guess that means there goes another few thousand dollars to accountants or 2 days of one's own time to do this right. At least, after the 1st year, one could get a handle on it.
There's something about doing it completely yourself that leads you to understand exactly how you are getting screwed and how to avoid the worst of it (some type of jelly?)