AboutGlenn D Schnabel Expertise I can answer most federal individual income tax questions.
I can not provide legal advise.
Experience I have worked for a CPA firm for over 11 years.
I have worked in private as well as government
I have recently been running a tax preparation office, mainly focusing on
individual income taxes
Organizations I have been affiliated with managing condo associations and as a member of a coalition to educate condo owners as to their rights and responsibilities.
Education/Credentials I have my B.S.B.A in Business Administration . Concentration in Accounting
I have gone to yearly tax seminars and have tried to keep up with the
evolving tax changes
Awards and Honors Over my years I have received local awards for contributions to worthy
organizations.
Past/Present Clients This, of course remains confidential
Expert: Glenn D Schnabel Date: 7/16/2008 Subject: social security
Question This is the first year I'm receiving social security My business failed and my only income is social security widows benefits which is 1,400 a month.I'm living in Spain
Do I have to pay tax on this? Also what forms should I submit. Thank you
Lisa
Answer Lisa,
Thank you for your question. Since your only source of income is
$1400 per month, you will not have to pay taxes on this amount.
You can exclude up to $25000 of total income before your social security becomes taxable. You would still have to file.
If you are a US citizen , you need to report your worldwide income. This could have an effect on whether you have taxable social security or not.
The forms necessary will be just the Form 1040, unless you have other income and expenses.
Hope this is helpful.
Lisa,
As a follow up, The income you make abroad would be subject to the Form 2555 Foreign Income Exclusion rules, but the income you get to exclude is the foreign earned income.
