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I am a US citizen, but legal resident of Honduras. Why do I owe any taxes at all if my income is below $60,000? (I have not seen the US for over 2 years.)

Forum|Forum|6 years ago
June 7, 2019
6 replies
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Obviously, I´m missing something. (I have very limited internet, so I can´t respond for probably a week.) Turbo program does not seem to understand by situation... or I do not understand my situation.

I own nothing in the US. In Honduras, In Honduras, I have a car, 2 motorcycles, a house, etc. I´m not moving back to the US, likely, ever.

My income is well below the $60,000 figure.

A huge thanks for any help whatsoever.

Best answer by TomD8

As a US citizen, you are legally required to file a US tax return and you are subject to US income tax on your worldwide income, even if you do not live within the US and its territories and/or have no US income.

You may avoid double taxation on your foreign earned income if you qualify for the Foreign Earned Income Exclusion and Foreign Tax Credits. TurboTax can handle these situations.

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TaxGuyBill

Employee

There is no "$60,000 figure".

Is ALL of your income "earned" income (from a job or self employment)? Or is part of your income "unearned" income (interest, dividends, capital gains, rental property income, etc.)?

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SweetieJean

Employee

Maybe OP is getting $60,000 from here?
<a rel="nofollow" target="_blank" href="https://www.irs.gov/individuals/international-taxpayers/some-nonresidents-with-u-s-assets-must-file-estate-tax-returns">https://www.irs.gov/individuals/international-taxpayers/some-nonresidents-with-u-s-assets-must-file-estate-tax-returns</a>

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SweetieJean

Employee

or this?
<a rel="nofollow" target="_blank" href="https://www.irs.gov/uac/newsroom/irs-reminds-those-with-foreign-assets-of-u-s-tax-obligations-2015">https://www.irs.gov/uac/newsroom/irs-reminds-those-with-foreign-assets-of-u-s-tax-obligations-2015</a>

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honduranpreacherAuthor

A huge thanks to everyone who helped or even tried to help. Since I have been outside the US, specifically in Honduras, for over 2 years, it is my understanding that I qualify for the exclusion. Once again, THANKYOU!

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honduranpreacherAuthor

I qualify for the exclusion, I just needed to keep reading. I admit, I hit the "panic button" too soon. Thanks to everybody who helped.

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TomD8Answer

Employee

As a US citizen, you are legally required to file a US tax return and you are subject to US income tax on your worldwide income, even if you do not live within the US and its territories and/or have no US income.

You may avoid double taxation on your foreign earned income if you qualify for the Foreign Earned Income Exclusion and Foreign Tax Credits. TurboTax can handle these situations.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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honduranpreacherAuthor

Thanks. By my understanding of the rules, I qualify for the exclusion because I have been outside the country for 330 consecutive days. I kept reading and studying, and I think I am right. I thank you for your prompt and helpful response.