It’s been a while since a reader from Intuit company has come to visit my blog. The last time was about a year ago (December 2010), and I assumed that it had to do with Making Work Pay Credit (because there isn’t much else on here that would involve the technicalities of filling out and American tax return).
Well, much like a year ago, someone from that IP has been coming all day and reading. To keep you up to date, my last (and probably final) post about Making Work Pay Credit (MWPC) was also last December (here, as part 6). This is the one where I go back and screen shot the congresionial record, showing that the language, that the IRS has been using to deny the credit to Americans abroad, didn’t even involve the Foreign Earned Income Exclusion when it was put into the tax code in the early 2000’s (2001).
Sometime last December, Congress did not extend the Making Work Pay Credit–instead opting for a one-year tax holiday on 2% of the employee portion of FICA. The MWPC thus fades into the fog of tax history, along with a couple dozen other rebates and one-time adjustments.
It was useless to make much of an effort advocating for MWPC for overseas Americans, because the overwhelming number do not file anyway. I still think the Service got the language wrong, but took my measly $74 credit this spring and was done with it. That credit was 6.2% of $1200. Even though the $1200 was foreign earned income, it was a deduction because that was the cost of the airline ticket home. So, for some reason, the Service likes that foreign earned income for the credit, but not the rest of it!
By the way, my good Intuit reader, I applied for the Ask a Tax Expert position, and I had requested that someone get back to me with my score. However, no one did. I think it would be professional courtesy, as one CPA to another, and if a CPA had something wrong, the other one(s) would point that out.
No wonder the profession is going down the tank, and has become just another chintzy commodity.