Thursday, March 06, 2008

U.S. Federal Taxes

I did all the calculations for my US federal taxes yesterday for 2007. I owe them $556 which is below the $1000 threshold where a penalty applies at least. Total federal tax for the year was $5888 on an AGI of $52,223 or a rate of 11.3%. My AGI was reduced by around $7,750 due to my maxing out my 403b in the first six months of the year. Of the remaining AGI, 57% came from wages and salary. Interest, dividends, and capital gains were all up on last year. I had $11,533 of qualified dividends and long-term capital gains taxed at a maximum rate of 15%. The remaining $30,949 of taxable income was also subject to a maximum marginal rate of 15%.

Now on to the New York State form.

At this rate we'll need to file an extension for Snork Maiden's US taxes. We still need to get her W-2 and some other documentation. I can either file for her as a dual-status alien who was non-resident at the end of the year or as a US resident for the year with the exclusion for foreign earned income using form 2555. The latter might be simpler.

We'll have this fun all over again later in the year when I do both our Australian taxes for the 2007-2008 tax year (ends 30th June). But at least we won't have to file US tax forms next year (or hopefully ever again!).

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