If you are an American living abroad I understand you must file taxes in the US. But if you are under the poverty level in the country where you live what effect does this have on your US taxes?

Answer 1

First, if you are abroad on April 15th on a given year. the tax payer 'receives an automatic two-month extension both to file returns and to pay the taxes. The I.R.S. charges interest on taxes due, starting April 15, but no penalties are assessed.'No penalties are incurred for a citizen or legal resident filing federal income taxes late while physically abroad, as long as the person files (and pays any taxes owed) before June 15. If you anticipate that you owe taxes, and you are cutting close to June 15, file an extension (this gives you 4 months from April 15.) If you continue to claim residency in a state while living abroad, check the rules of that state, (most likely available on the internet or by mail, or ask the embassy/ consulate for assistance.)

As for living below the poverty line, since the amount of exemption for foreign earned income is $82,400, this probably means no taxes are owed, there would be no penalties or interest charged. Beyond this, the filing process is the same.

Moving abroad is a personal decision. Physically being outside of the United States' and its 50 states' and territories' respective jurisdiction also means being outside of their welfare systems (if any.) In the event of a person receiving welfare or unemployment insurance payments, the cheques will continue to arrive in the mail unless disqualified.Unless you work for the government or for a non-profit which is directly subsidized by the government, you will probably not receive economic exemptions and assistance. If you feel that you are entitled to certain exemptions and assistance beyond being in poverty, find out who is responsible for its distribution and contact them.