Mike K
Contributing Member
Cash: $ 7.55
Posts: 37
Joined: 16 Apr 2006
Location: Doha, Qatar
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I dont pay taxes on my income (federal or state taxes) up to $88,000 a year i think it is. If i make ~$70,000 a year from my employer and i make $10,000 throughout that year from investments is that 10K taxed differently or is it tax free as well?
Just playing with numbers to see how i should be investing. Thanks for any help and if any more informaiton is needed i am willing to give it.
-Mike
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Sun Apr 16, 2006 10:52 am |
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Mike K
Contributing Member
Cash: $ 7.55
Posts: 37
Joined: 16 Apr 2006
Location: Doha, Qatar
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I am a government contractor working in the Middle East. The Military (Air Force in this case) figured it would be cheaper to have civilians repair all the vehicles here on base so they sent the military home and contracted out vehicle maintenance. Northrop Grumman won the bid for the contract and that is who I work for and yes, income is 100% federal and state tax free up to $88,000 a year. I think it was $82,000 last year but I heard it was bumped up.
My question is, if I invest in the stock market, and hypothetically invest some money and make $10,000 is it taxed? OR do does it fall under my normal income and is still tax free as long as combined I don’t go over $88,000 a year.
So to break it down even more, if I make $75,000 this year, find that hidden gem stock and make $10,000 from my investments during this coming year.... 75,000 + 10,000 = $85,000 for the year. 85,000 is under 88,000 so it should be tax free right? UNLESS money made from stocks (is this called capital gains?) is categorized differently then 'normal' income.
I haven’t been able to find a straight answer. This is my second year being a contractor but my first year that i started investing.
-Mike
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Sun Apr 16, 2006 12:53 pm |
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Mike K
Contributing Member
Cash: $ 7.55
Posts: 37
Joined: 16 Apr 2006
Location: Doha, Qatar
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Thanks for your thoughts coaster. I think the short term stock info pretty much answered my question. I have a feeling i am not going to know FOR SURE untill next year when i file my taxes again. Just hopeing somebody would save me a little reading 
-Mike
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Sun Apr 16, 2006 1:17 pm |
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Kiaser
Senior Member
Cash: $ 43.05
Posts: 209
Joined: 12 Apr 2006
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quote:
Originally posted by Mike K
I am a government contractor working in the Middle East. The Military (Air Force in this case) figured it would be cheaper to have civilians repair all the vehicles here on base so they sent the military home and contracted out vehicle maintenance. Northrop Grumman won the bid for the contract and that is who I work for and yes, income is 100% federal and state tax free up to $88,000 a year. I think it was $82,000 last year but I heard it was bumped up.
My question is, if I invest in the stock market, and hypothetically invest some money and make $10,000 is it taxed? OR do does it fall under my normal income and is still tax free as long as combined I don’t go over $88,000 a year.
So to break it down even more, if I make $75,000 this year, find that hidden gem stock and make $10,000 from my investments during this coming year.... 75,000 + 10,000 = $85,000 for the year. 85,000 is under 88,000 so it should be tax free right? UNLESS money made from stocks (is this called capital gains?) is categorized differently then 'normal' income.
I haven’t been able to find a straight answer. This is my second year being a contractor but my first year that i started investing.
-Mike
How is the income from the contract job abroad signified on your taxes that it is exempt? I would assume that the income gained from sources other than the contract job in the Middle East would be classified as different income and be taxed accordingly. It's definetely a question that a professional would have to be consulted on, however.
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Sun Apr 16, 2006 5:14 pm |
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Mike K
Contributing Member
Cash: $ 7.55
Posts: 37
Joined: 16 Apr 2006
Location: Doha, Qatar
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Kiaser,
I have to fill out a 'Foreign Earned Intcome' form (form 2555 i think???) ...
The only requirements for it are you have to reside outside the US for 330 (?) days in a 364 consecutive day period and your income must come from over here.
I tried to cut and paste from TurboTax online (where i did my taxes) but it wouldnt let me.
If i do my trading over here, and i am outside the US, then it may still count under the tax free income.
We have no access to professional tax help. The company wont even suggest or provide a tax rep due to legal reasons and we cant make phone calls longer then 15 minutes. Trust me when i say it is a big PITA if we have to call back to the states to take care of personal stuff. Thanks why i asked on here, thinking there might be somebody to shed a little light.
Being that i just started investing, i have a feeling that i am not going to hit a HUGE pot of money that is going to put a tax burden on me even if i do have to pay taxes on the earned money... so i think i will be ok. But i do appreciate your comments.
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Sun Apr 16, 2006 5:52 pm |
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Mike K
Contributing Member
Cash: $ 7.55
Posts: 37
Joined: 16 Apr 2006
Location: Doha, Qatar
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coaster.... links work for me and i will look into it tomorrow, thanks for the help.
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Sun Apr 16, 2006 7:13 pm |
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prioritytaxgroup
Contributing Member
Cash: $ 5.05
Posts: 25
Joined: 20 Jun 2014
Location: usa
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Salaried employees are always in god position, as far as tax is concerned. But professionals who earn in cash, are not bothered about tax, unless money is deposited in bank account. Its all about managing money, financial literacy and economic awareness that makes a person professionally successful.[/b]
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Wed Aug 13, 2014 12:05 pm |
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