This is a really great question, thank you.
Like so many things with taxes you only got part of the message. Taxes are crazy with rules that are a lot more complex than they should be. So here is the issue for you. As aUScitizen, you are taxable on your income no matter where it is earned. If you earned money inCzech Republicit is still taxable here.
Where does the $70,000 come in? There’s a foreign earned income exclusion. An exclusion doesn’t mean you don’t have to file it means you don’t have to pay tax on the excluded amount. So you file a return and show the exclusion. There are two ways to qualify for the exclusion one is physical presence test. Were you out of theUSfor 330 days? The second is bona fide residence. Did you intend the other country to be your home?
Even if you didn’t qualify for an exclusion you qualify for a credit for any foreign taxes you paid. So it is not likely you would owe much Federal Tax.
Californiais different. I think for each year you file, it is quite likely CA will come after you for tax. They don’t have the above rules. It looks like you left CA to go to college, traveled a bit, and came back to CA. Californiawill try to say you are domiciled in CA the whole time. You can fight it but I would have to know more to know if you have a chance to win. I bring this up because it will be an important consideration in what to file.
If you want the returns done we can do them. The cost would be about $250 per year and it will take about a week to get them finished. If you want to discuss more probably best to call the office 310-347-7499 and they can set up a phone conference time for a complimentary review of your situation.
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