# US Tax return - different tax years



## GETMEOUT (Jan 18, 2014)

Hello,
I have been in OZ since 1997. I have not been filing my us tax returns and now wish to do so under the IRS Streamlining program.
Australia has a tax year that ends 30 June, so I am wondering how other people are calculating their taxes.
I have no deductions, other than interest on a money I then relend to someone esle so the general idea is pretty simple.
The amount of money I have made over the last 4 years varies between 72 and $84k. 
So, if I am doing say my 2012 US return it would be for the year ending 31 Dec 2012. Do I just take half of the income from my Australian tax return for the year ending 30 June 2012 and half of the income from my Australian tax return for the year ending 30 June 2013 to state my income to the IRS? I do not think I can find out exactly how much I made in the US tax years I am going to file. They are not far off and I will not owe any tax, but I still have to file 3 or 4 years of back returns.

Following that, for the example above, regarding the US tax year ending 2012, would I just use the ATO assessment for the Australian tax year ending 30 June 2012?

Any help would be appreciated. I know there is a tax forum on here but I do not see any posts about what to do if you are living overseas in a country that has a different tax year.

Thank you.


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## Bevdeforges (Nov 16, 2007)

The method you propose (take half from the end of one tax year and add half from the beginning of the next) works fine. Between the difference in tax years and the conversion from one currency to the other, they aren't looking for accuracy to the penny. But your ATO assessment isn't the best source for taking your income.

The US expects you to declare your gross income - before any deductions for social insurance or other taxes that many other governments make in arriving at taxable income. Ideally, you should reconstruct your gross income from bank or other records.

Download IRS publication 54 from the IRS website for more instructions on how to determine your income.
Cheers,
Bev


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## GETMEOUT (Jan 18, 2014)

Bevdeforges said:


> The method you propose (take half from the end of one tax year and add half from the beginning of the next) works fine. Between the difference in tax years and the conversion from one currency to the other, they aren't looking for accuracy to the penny. But your ATO assessment isn't the best source for taking your income.
> 
> The US expects you to declare your gross income - before any deductions for social insurance or other taxes that many other governments make in arriving at taxable income. Ideally, you should reconstruct your gross income from bank or other records.
> 
> ...


Thank you so much. I am so stressed about simply due to the FBAR. I will look at that Pub. :wave:


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## GETMEOUT (Jan 18, 2014)

OMG, I am now so stressed out. I have just looked at the Pub and think I may be totally screwed.

All of my income is non-earned - ie just interest.

I am both a US and Australian citizen.

My reading of that Pub seems to be that I was supposed to pay US tax first and then claim it back on my Australian taxes.

I have been paying Australian taxes and they are more than US, but because non of my income is "earned" I might owe taxes on the whole lot to the US. Can anyone tell me if this is correct?


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## rabbitone (Jan 18, 2014)

*newbie*

Hello Getmeout, I dont know how your doing this because I have almost the same exact problem. I,m a US citizen who has been living in the Philippines for the past 8 years. Since I,m disabled and cant work my father told me I didnt need to file.Boy was he wrong.I didnt file since 2006 and now the IRS says I owe over $40,000. This is crazy but you cant fight the IRS.When I took my pension in 1 lump sum, they had to take the taxes out before they could issue me a check and years later the IRS tells me they didnt take enough taxes out. I,m talking about a $168,000 check.Then in 2010,I got a $50,000 check because I didnt finish some stupid paperwork which allows me to recieve an extra part of my pension.I get $864 a month now but they paid me retroactively since my disability and I am quite stupid when it comes to paperwork. I worked for the electrical union for 26 years. I cant pay because when I married a filipina in the Philippines, she scammed me out of every dollar and peso I had in the bank----so much for trusting your wife---we opened a joint account which was very stupid on my part.At that time we didnt have an atm card and I couldnt walk very good, and when I finally got to the bank, my money was gone and the bank claimed I did not exist. So now I,m working with an advocate which is getting me nowhere except more charges and penalties.Sorry this is so long but I,m ready to pull my hair out because of all the stress. Now I am filing every year again but I dont know why. I,m getting much older and my health is getting much worse. Like you, I have no idea of what to do. Also I cant even claim my fiance or my daughter simply because I live in the Philippines.Anyway my name is James and I wish we could keep in contact to help each other out.


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## rabbitone (Jan 18, 2014)

Hello Getmeout, I think you are right but to be sure go to the IRS website in the states and you can also download any publication you want, past or present.


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## GETMEOUT (Jan 18, 2014)

GETMEOUT said:


> OMG, I am now so stressed out. I have just looked at the Pub and think I may be totally screwed.
> 
> All of my income is non-earned - ie just interest.
> 
> ...



By the way, my interest was all paid to me by an australian business, not a bank.


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## GETMEOUT (Jan 18, 2014)

The second part of thisgives me hope maybe I was okay in paying Aussie tax first:

1. I took a position on my income tax return based on a U.S. income tax treaty. However, I received a letter indicating that my treaty-based position is invalid. What can I do?
Call the phone number on the letter you received for specific information about your situation.
Examples of reasons why you may have received the letter include the following:
If you take the position that any item of income is exempt from U.S. tax or eligible for a lower tax rate under a U.S. income tax treaty (a treaty-based position), you generally must disclose that position on Form 8833 and attach it to your return. For exceptions to the disclosure requirement, see the Instructions attached to Form 8833, Treaty-Based Return Position Disclosure Under Section 6114 or 7701(b) (PDF).
If you are a tax resident in both the United States and a foreign country based on each country’s laws, you must use the provisions of an income tax treaty to claim tax residence in only one country. If you claim tax residence in a country where you are not eligible to claim residence, or the information on your tax return does not appear to support this position, your treaty-based position may be denied.
Return to FAQs

it is from 
Frequently Asked Questions (FAQs) About International Individual Tax Matters



OMG can someone please help me?


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