[raymond58]

Hi,

Can someone tell me if I'm working in Australia and being taxed their if I'm sending money to the US, do I have to file a tax return here in the US to get double taxed?

[donf]

If you are a US citizen and you derive you income from a foreign source, sorry but the answer is yes.

[AtlantaTaxExpert]

You will have to file a U.S. income tax return if you are either a U.S. citizen or a resident alien on ANY income earned ANYWHERE in the world.

Now, whether you have to pay taxes is another issue, as you will be able to claim a Foreign Tax Credit for the income taxes you paid to Australia.

I believe Australian income tax rates are somewhat higher than U.S. tax rates. If so, it is likely that the tax credit will completely offset any tax liablity you may have.

[MukatA]

It does not depend upon if you send money to the U.S. or not. Yes, if you are a U.S. citizen or resident, you must file the U.S. return and disclose your world wide income. You may get earned income exclusion of up to $85,000 and/or foreign tax credit for taxes paid in the foreign country. If you are maintaining house in the U.S. and your family is in the U.S. you can get house exclusion.

[AtlantaTaxExpert]

There was a nasty surprise in how the Foreign Income Exclusion is calculated starting with the 2006 returns.

You STILL get to exclude $85K of your foreign earned income, but the amount OVER that $85K is taxed at the marginal tax rate that would be in effect if the $85K was NOT excluded.