This lovely gem was taken directly from "Publication 54" - Otherwise known as Tax Guide for U. S. Citizens and Resident Aliens Abroad.
"If you work one year, but are not paid for that work until the next year, the amount you can exclude in the year you are paid is the amount you could have excluded in the year you did the work if you had been paid in that year."
I welcome your comments on this insanity.... Seriously...
"If you work one year, but are not paid for that work until the next year, the amount you can exclude in the year you are paid is the amount you could have excluded in the year you did the work if you had been paid in that year."
I welcome your comments on this insanity.... Seriously...
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This seems like a fairly circumstantial thing and may only be relevant for people who are close to the threshold.
I THINK what it means is if you worked one year and were under the exclusion limit (of what is it $92,000 USD?), but worked at the end of year and weren't paid for that work until the next year, say Jan 2011 (for the 2010 year) and that money pushed you over the limit for the 2011 year, you could exlude it due to the money having been earned in the 2010 year.
I hope that makes sense!
Also, the bot filter made me type in "fluckero" to post. I think that's my new favourite word!
FLUCKERO!
That is exactly why we had an accountant do our US taxes. We don't normally, but I couldn't deal with all of the craziness! I'm hoping this year's OZ taxes will be easier since we don't have any income from overseas. I HATE dealing with taxes!!!