dpb wrote:
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Alan wrote:
....
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And, I would presume, if this is the situation going forward, she should
file and pay estimated quarterlies in future years as well to avoid
possible penalties/interest???

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Jan 23, 1:22*pm, thebigvulc...[at]gmail.com wrote:
(snipped)
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I prepare many tax returns every season for non-US citizens who are
currently without work authorization forms and do not have social
security numbers. The program in which I volunteer uses IRS-provided
training and software. Our instructions for these situations is to
file a 1040 using the ITIN and apply all US tax laws. Than means
declaring worldwide income from whatever source derived and paying the
applicable self-employment tax. Whether or not the taxpayer is later
eligible for any financial benefits does not affect the taxation of
income.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

thebigvulcano[at]gmail.com wrote:
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the amount of time of physical presence in the US. As such, she
is taxed in the same manner as US citizens are taxed.

She must include her worldwide income on her tax return. As she
is self-employed, she reports the income from her profession on
Form 1040 Schedule C. She can deduct her ordinary & necessary
business expenses from her income on that schedule. If her net
earnings from self-employment are at least $400 she must complete
Schedule SE, where she computes her self-employment (social
security & medicare) taxes. The US Social Security
Administration will provide her work credits every time she files
and pays social security taxes. She would file using her ITIN as
her taxpayer ID number. If she builds up enough work credits, she
would be entitled to social security benefits in the future.

The IRS does not release personal tax information to ICE.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

This question is for those who really know about taxes.

I promised my neighbor to figure something out for her.

Technically, she is an illegal alien in the USA. She can't return home
as she is target of mafia persecution in Italy. She tried but U.S.
Government is not helping her. However, she got a temporary tax payer
number from the IRS.

She is an artist, a freelancer and made 30.000 Dollars income this
year. She stayed the entire year in the USA.

Now, here is the catch: Just half of the money is made from American
customers, the rest of it was made through her customers all over the
world as China, Greece, Israel, UK, Germany, Slovakia, etc.

There is no doubt that she has to pay the taxes for her American
income to the IRS but what about the income from other countries?

She has no Medicare, Medicaid, no social security insurance. She
doesn’t get anything from the USA as other people who make tax
payments and pay in a social security account. She has no social
security net in the USA at all, she won't even get food stamp if she
needed them.

The tax money that she pays, she likely will never see again as we
do, when we get our social security benefits.
She doesn't want to pay taxes to her government in Italy as they don't
go after the mafia either that is after her.

Important is to do the right thing. Please inform how I should advice
her in regards of the taxes .


Robert

P.S. She is nice and has good intention, I won't turn her over to the
INS.

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >