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Income tax. Itemized deductions and exemptions

ROC taxes, overseas payment of taxes, withholding rates, general tax liability issues, and other tax-related matters
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Re: Income tax. Itemized deductions and exemptions

Postby spaint » 27 Mar 2016, 06:08

Abacus wrote:I filed my taxes yesterday and qualified for the full 303,000 in exemptions and deductions like you would expect. I also proxy filed for a friend that wasn't able to take care of it before he left last year and he didn't get the full 303,000 amount of deductions and exemptions.

Background
18% was withheld from his checks as expected
has APRC - doesn't matter
stayed 187 days last tax year - visibly saw this written down
definitely taxed at 5%

His deduction worked out to 217656 (he obviously earned more than the 303K that year). It looks like they prorated his 85,000 personal exemption and his 90,000 standard deduction for the time that he was resident and he didn't receive these full deductions/exemptions.


Were you resident the full 365 days?

It doesn't seem right that they'd prorate your deductions like that. They don't prorate the Taiwanese (hell, they don't even check if they're resident the requisite 183 days) and if you're traveling for business and have Taiwanese dependents they're still here while you're "non-resident".

I'm very curious if there's a threshold above which the deductions aren't prorated, or if they only hit your friend because he wasn't physically present to file.
spaint
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Re: Income tax. Itemized deductions and exemptions

Postby yyy » 27 Mar 2016, 16:09

Good question!
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Re: Income tax. Itemized deductions and exemptions

Postby Abacus » 27 Mar 2016, 20:25

spaint wrote:
Abacus wrote:I filed my taxes yesterday and qualified for the full 303,000 in exemptions and deductions like you would expect. I also proxy filed for a friend that wasn't able to take care of it before he left last year and he didn't get the full 303,000 amount of deductions and exemptions.

Background
18% was withheld from his checks as expected
has APRC - doesn't matter
stayed 187 days last tax year - visibly saw this written down
definitely taxed at 5%

His deduction worked out to 217656 (he obviously earned more than the 303K that year). It looks like they prorated his 85,000 personal exemption and his 90,000 standard deduction for the time that he was resident and he didn't receive these full deductions/exemptions.


Were you resident the full 365 days?

It doesn't seem right that they'd prorate your deductions like that. They don't prorate the Taiwanese (hell, they don't even check if they're resident the requisite 183 days) and if you're traveling for business and have Taiwanese dependents they're still here while you're "non-resident".

I'm very curious if there's a threshold above which the deductions aren't prorated, or if they only hit your friend because he wasn't physically present to file.


I was a resident the full year but my friend definitely wasn't. It is quite obvious to them that he left Taiwan in July but he probably would have gotten the full deduction if he had spent a week or two in Taiwan late in the year. I thought the situation was a little strange and couldn't really find the exact wording in the tax code although it does mention resident when talking about the tax deductions/exemptions.
Abacus
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Re: Income tax. Itemized deductions and exemptions

Postby spaint » 30 Mar 2016, 09:40

Thanks for the reply. For what it's worth, I've had absences of slightly less than two months and still had the full deductions (I think). I guess the risk comes in having someone else file for you, by which action you're sort of implicitly signaling a non-residency status.
spaint
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Re: Income tax. Itemized deductions and exemptions

Postby Abacus » 30 Mar 2016, 10:52

spaint wrote:Thanks for the reply. For what it's worth, I've had absences of slightly less than two months and still had the full deductions (I think). I guess the risk comes in having someone else file for you, by which action you're sort of implicitly signaling a non-residency status.


I really don't understand what the other option was though. He could have filed early by saying that he was leaving Taiwan permanently and wouldn't be in Taiwan for the rest of the year or during the next filing period. At that point he would have only received a partial deduction also. The only other option would have been to fly back from Europe just to file his taxes. That wouldn't have made any sense either.
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Re: Income tax. Itemized deductions and exemptions

Postby spaint » 31 Mar 2016, 00:20

Given the information you've shared I would try filing online over early filing or having a rep file for me. Might still have the same result of course, and you'd need someone to send your receipts in from inside Taiwan.
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