We have a company here in the Netherlands (Amsterdam) doing our Netherlands taxes and a guy that we used last year in Los Angeles working on our U.S. taxes. We have to file The Netherlands first and then the U.S. taxes get filed with a copy of the Netherlands taxes attached.
The other day we received a letter from the person filing our Dutch income tax return. We had to file separately this year because I didn't move here full-time till last June. Andrew receives what is called a 30% ruling:
Financial consequences
Based these conditions you may be eligible for the 30% ruling, but what does it actually mean? From a tax perspective, the salary agreed upon between the employee and employer will be reduced by 30%. In return, the employee should receive a 30% reduction as reimbursement for expenses. This is the most common way it is done since it does not influence the salary burden for the employer.
Because I'm not working here I do not benefit from the 30% ruling. However, I'm being taxed on money I had in the bank in the U.S. as of January 1, 2013! Sooooo, I owe the Netherlands €3,197 (excluding possible interest): €1,739 tax/national insurance premiums and €1,458 income related health care insurance contributions. Needless to say, we were not prepared for thaaaaat!
Next year we will be able to file jointly so this won't apply.
____________________________
Today is Friday, June 21st. The tax saga continues!
Yesterday we received an email from our Dutch "tax guy". The Dutch authorities want more proof that I was still living and working in the U.S. till June 1st last year...Apparently my W2 wasn't enough. So, I'm now making copies of my passport, my plane tickets from 2012, the house sale paperwork, my paychecks, and anything else that can prove I was still living there. Oh myyyyy.....all because I got my residency card in December 2011 because we had someone there to help us at the time. If we don't send in all this information we will be taxed more than double. Plus, with more paperwork.....of course, there is another fee for that! It's going to cost us another €300!
____________________________
Today is Friday, June 21st. The tax saga continues!
Yesterday we received an email from our Dutch "tax guy". The Dutch authorities want more proof that I was still living and working in the U.S. till June 1st last year...Apparently my W2 wasn't enough. So, I'm now making copies of my passport, my plane tickets from 2012, the house sale paperwork, my paychecks, and anything else that can prove I was still living there. Oh myyyyy.....all because I got my residency card in December 2011 because we had someone there to help us at the time. If we don't send in all this information we will be taxed more than double. Plus, with more paperwork.....of course, there is another fee for that! It's going to cost us another €300!