2008 Tax Tips.

[BECsufferer]

Hello Reader!

Filing tax is important, not only to pay back but for majority recieve witholdings. I wanted to start this thread, to capture tips and pointers that can be benifical to community. You worked hard last year, you deserve better than standard deductions. Please share and learn. Thanks and have a good tax season.

[waitingforGC04]

My frined is working on W2 for a consulting company. His client is willing to pay for his expenses at client place directly to him.

they are paying from expense account.

Is it ok to accept checks from them while he work for another company on W2 and he is on H1
Now his client is asking him to give his SSN no for filing 1099 form.. does he need to submit any form to IRS?

[waitingforGC04]

Please need help...

[nashim]

Hi Gurus,
For USCIS prospective, does it matter if I file myself 2008 federal and state tax return online using Turbo tax/ TaxAct. If there is any RFE in future on pending I-485 for tax filing, Will USCIS accept online filed 1040 form?
I am thinking why to give around $250-300 to HR block … professional if I can file myself. Thanks

[waitin_toolong]

Originally Posted by nashim

Hi Gurus,
For USCIS prospective, does it matter if I file myself 2008 federal and state tax return online using Turbo tax/ TaxAct. If there is any RFE in future on pending I-485 for tax filing, Will USCIS accept online filed 1040 form?
I am thinking why to give around $250-300 to HR block … professional if I can file myself. Thanks

you dont have to go to HR block to paper file.

just use the software to print the forms and mail them

[gcdreamer05]

Last 4 years i used to file via a online tax site, it just costs me 29$ or so.

But last year alone i went to hnr block, it did not cost me 250$ like how you are saying, i paid just 50$.... and also i had to go because i had to file ITIN....

So like how you say it is not soo costly, you can do it online in many online trusted sites like
turbotax or hnrblock online .......

Guys dont give me reds, i do not work for hnr or turbotax.

[sunil68]

How does one pay taxes on NRE & FCNR accounts? I mean, Indian banks do not issue 1099-INT forms like US banks do. Do they issue some kind of certificate in lieu of that form? Calculating taxes on FCNR accounts can be little easier as they pay you interest in dollars, but how do you calculate taxes on NRE rupee accounts? At what conversion rate you convert your rupee interest in dollars? Also, I know you have to report your accounts abroad to the US treasury dept, ONLY if the total amount in those accounts together exceeds $10,000 any time in any year as instructed in 1040-Schedule B. So if it is below $10k, you do not need to report and if you do not report, then how do you pay taxes on it? If you still need to pay, then what documents you need to provide to IRS from your Indian bank?

I am pretty sure this can be very useful for those have or plan to have bank accounts in their native countries for meeting local expenses. So please share your knowledge and information here.

[Dhundhun]

Originally Posted by nashim

Hi Gurus,
For USCIS prospective, does it matter if I file myself 2008 federal and state tax return online using Turbo tax/ TaxAct. If there is any RFE in future on pending I-485 for tax filing, Will USCIS accept online filed 1040 form?
I am thinking why to give around $250-300 to HR block … professional if I can file myself. Thanks

First few years, there were several unknowns, ended up paying HR block guys a lot.
Then started using on-line packages. It was equally good.
Last year, wife got SSN so filed manually (took 3 hours), others used to take more time. Got refunds as well as stimulus.

Upto you to decide. USCIS cares only that tax is filed, and when in doubt will ask for all physical copy of filing - I think for every year of presence in US - nothing else work there.

[sunil68]

any response here!!!

Originally Posted by sunil68

How does one pay taxes on NRE & FCNR accounts? I mean, Indian banks do not issue 1099-INT forms like US banks do. Do they issue some kind of certificate in lieu of that form? Calculating taxes on FCNR accounts can be little easier as they pay you interest in dollars, but how do you calculate taxes on NRE rupee accounts? At what conversion rate you convert your rupee interest in dollars? Also, I know you have to report your accounts abroad to the US treasury dept, ONLY if the total amount in those accounts together exceeds $10,000 any time in any year as instructed in 1040-Schedule B. So if it is below $10k, you do not need to report and if you do not report, then how do you pay taxes on it? If you still need to pay, then what documents you need to provide to IRS from your Indian bank?

I am pretty sure this can be very useful for those have or plan to have bank accounts in their native countries for meeting local expenses. So please share your knowledge and information here.

[Dhundhun]

Originally Posted by sunil68

any response here!!!

Submit your own calculation of interest in a year (Jan to Dec). In India, anyway for tax purpose the interest info is from Apr to Mar.

I think, IRS trusts that calculation, never asked for supporting documents.

[sunil68]

Thanks a lot. Second part of my question - If you do not need to report accounts below $10k to IRS, then does that mean you do not also have to pay taxes on that? In other words, do you need to pay taxes only if it exceeds $10k?

Originally Posted by Dhundhun

Submit your own calculation of interest in a year (Jan to Dec). In India, anyway for tax purpose the interest info is from Apr to Mar.

I think, IRS trusts that calculation, never asked for supporting documents.

[snathan]

Originally Posted by nashim

Hi Gurus,
For USCIS prospective, does it matter if I file myself 2008 federal and state tax return online using Turbo tax/ TaxAct. If there is any RFE in future on pending I-485 for tax filing, Will USCIS accept online filed 1040 form?
I am thinking why to give around $250-300 to HR block … professional if I can file myself. Thanks

I am using only turbo tax for years...

[snathan]

Originally Posted by gcdreamer05

Last 4 years i used to file via a online tax site, it just costs me 29$ or so.

But last year alone i went to hnr block, it did not cost me 250$ like how you are saying, i paid just 50$.... and also i had to go because i had to file ITIN....

So like how you say it is not soo costly, you can do it online in many online trusted sites like
turbotax or hnrblock online .......

Guys dont give me reds, i do not work for hnr or turbotax.

I used the turbo tax and filled the application for ITIN and sent it along with the print of online filing. No issues and it was accepted by the IRS

[snathan]

Originally Posted by sunil68

How does one pay taxes on NRE & FCNR accounts? I mean, Indian banks do not issue 1099-INT forms like US banks do. Do they issue some kind of certificate in lieu of that form? Calculating taxes on FCNR accounts can be little easier as they pay you interest in dollars, but how do you calculate taxes on NRE rupee accounts? At what conversion rate you convert your rupee interest in dollars? Also, I know you have to report your accounts abroad to the US treasury dept, ONLY if the total amount in those accounts together exceeds $10,000 any time in any year as instructed in 1040-Schedule B. So if it is below $10k, you do not need to report and if you do not report, then how do you pay taxes on it? If you still need to pay, then what documents you need to provide to IRS from your Indian bank?

I am pretty sure this can be very useful for those have or plan to have bank accounts in their native countries for meeting local expenses. So please share your knowledge and information here.

I am not sure about this, but I remember I read somewhere. You have report your foreign income only if you are alien resident(GC?) or citizen. So I am not sure for H1 to report eraned income in india...?

[GC_dd]

I am on h1b. I worked for an employer for 6 months in 2008. He has my LCA for CA and he withhold tax for CA whereas I was living and working in OR for 6 months. My consultant is advising me to file tax for OR. any suggestions.