Showing posts with label USA taxes. Show all posts
Showing posts with label USA taxes. Show all posts

Thursday, October 01, 2015

The Working Poor, Me!

Israeli income tax isn't done like American. I grew up with an accountant (later CPA) father whose annual calendar/schedule revolved around April 15, the official deadline for submitting tax forms. He was a one-man business most of the year. The only time he hired anyone to help was before that deadline during "tax season." While two of my mother's nephews were in college, they were trusted and hired as my father's assistants, and one of them even became an accountant, too.

In Israel, if you're an employee with just one job, you don't have to fill out any forms besides the once a year one in which you submit to the authorities via the employer saying that you have only one source of income. Taxes are calculated at source by the employer.

A few years ago, I discovered that by filling out a simple form in the Post Office, I, as a part-time minimum wage worker could get a bit of extra money. It's known as the "negative income tax." The first time I read the letter from the tax authorities I thought it was a trick, but my daughter told me to take care of it. It's no joke. So now I make a point of going into the post office with my Teudat Zehut, Identity Card and checkbook. Yes, that's it. The clerk fills out the form. Once, in the Ofra post office, he insulted me by saying that I do not look like the picture in my I.D. But after an unpleasant delay, he realized who I am and said he knows my daughter and did his job.

Pisgat Ze'ev Post Office, while waiting on line

This year, actually two days ago, right before the deadline, I finally took care of it. This time there was a complication with my bank account, because the branch we had been using for years had closed. That meant that although my checks (from the old one) are still good for paying, the bank computer didn't recognize the old branch and account numbers which the clerk had copied from the checks. Luckily my husband was home and after going through all sorts of papers found the new numbers. The clerk was extremely nice, patient and tolerant of the situation.

Between waiting my turn and the mess with the numbers, I spent a full hour in the post office. Gd willing within a few weeks I'll get my usual letter saying that I'm eligible for a sum of money which will be deposited in my account by the tax authorities. It will certainly come in handy.

Sunday, February 08, 2015

Possible Solution to My USA Income Tax Problem

Does anyone know more about this?

Considering that my husband and I moved to Israel in our very early twenties in 1970, going on forty-five 45 years ago, we're very upset about the recent law and enthusiastic enforcement of it requiring that all American citizens, even expats who earn little money and ask nothing of the USA Government must file tax returns. Remember that we pay for our American Passports. Finding a qualified accountant here in Israel to do it for us will cost a lot of money, which we don't have to spare.

For us, relinquishing American citizenship isn't an option. We have close family there and need to visit without the hassles of visas.

This morning before checking my yahoo mail, I saw an interesting headline in their news about freebies for seniors. Look at this:
Free tax preparation. The Tax Counseling for the Elderly (TCE) program offers free tax help to all taxpayers with an emphasis on those age 60 and older. Volunteers, who are certified by the IRS, specialize in pension and other retirement-related tax issues. Use theTCE locator tool to find a site near you. And AARP Foundation Tax-Aide offers free tax preparation for low- to moderate-income taxpayers, especially those 60 and older, at more than 5,000 locations.
I plan on clicking the links here for more information, but I'd like to know if anyone how there reading this knows more, thanks. I'll be visiting the states soon.

PS How can I get an American "senior citizen card?" I missed out on train discounts in a previous visit, because the ticket checker didn't recognize my passport as official proof.