Showing posts with label Taxes. Show all posts
Showing posts with label Taxes. Show all posts

Thursday, September 07, 2017

מדינת ישראל שולחת את הכסף שלנו ליהודים בחו״ל/Israel Sends Money to Jews in the Exile

ט״ז לחודש השישי תשע״ז
English follows the Hebrew.
תרגום של מאמר עיתון הארץ ׁׁ(למטה):
הארץ: מדינת ישראל מבטיחה לשלוח מיליון דולרים לעזור לקהילה היהודית ביוסטון, טקסס, ההרוסה ע"י שיטפונות
"שנים הקהילות היהודיות עמדו עם ישראל כשהיא צריכה עזרה מהם. עכשיו תורינו לעמוד עם הקהילה היהודית שביוסטון," אומר שר התפוצות נפתלי בנט.

AP, 04/09/17

נפתלי בנט
בנט אומר ש"שנים הקהילות היהודיות עמדו עם ישראל כשהיא צריכה עזרה מהם. עכשיו תורינו לעמוד עם הקהילה היהודית שביוסטון." יגישו את הצעת תרומת כסף הזאת בבקשת אישור מהממשלה בישיבת הקבינט. הרווי הגיע ב-25/08/17, והיכה את העיר, חמישה ימים רצופים, גשמים כבדים, וגרם נזקים שעולה עשרות מיליארדים דולר בערך לתקן ולבנות מחדש.

נציגי מדינת ישראל אמרו ביום שני (03/09/17) שהיא תורמת $1 מיליון דולר לקהילה היהודית ביוסטון לעזור לה להתאושש אחרי הוריקן הרווי. שר התפוצות נפתלי בנט אמר שהכספים האלה יעזרו ל-60,000 אנשים בקהילה החזקה הזאת לתקן ולבנות מחדש בתי ספר, בתי כנסת, ומתנ״ס שהסופה והשיטפונות הזיקו אותם.
עשר אגורות (2¢):
אחרי הוריקן קטרינה, לפחות קהילה יהודית אחת גייסה תרומות של מיליונים כדי לבנות מחדש את בית כנסת שלהם ההרוס.

לאחרונה ולפני הוריקן הרווי, אירעו כמה שיטפונות ביוסטון, טקסס, שגרמו נזקים לקהילה היהודית שמה. אבל כמו היהודים בארה״ב שבנו מחדש את בית הכנסת שלהם, היהודים ביוסטון מתעשקים להשאר בגלות למרות האירועים כאלה.

הזמן הגיע כבר לעזוב את הגולה, לצאת מהמדינות של הגוים ולעלות לארץ היחידה שייכת לעם ישראל.

והיהודים האלה ציונים?! בכלל לא. לא אכפת להם לעזור את היהודים האלה לעלות ארץ ישראל. אלא אכפת להם אך ורק על הרושם שלהם ושל מדינת ישראל בפני הגוים.

כנראה אתם הייתם שואלים אותי, ״לא כדאי לדון בהם בכף זכות?״

מי שמזדהה כדתי ציוני, ורוצה למסור שלטת חלקי ארץ ישראל לערבים, לתת אזרחות מדינת ישראל לעוד הרבה ערבים המזדהים כ״פליסטינאים,״ ולזרוק כסף (שלנו!) ליהודים כדי לבנות מחדש את הקהילה שלהם בחוץ לארץ, ולא לעזוב את המדינות של הגוים, ולעלות לארץ היחידה של עם ישראל, אלא כדי לעזור ליהודים האלה להשאר בגולה, לא מגיעה לו שום כף זכות ממני.

אתם רוצים שהמסים ששילמתם לממשלה יגיעו ליהודים בחוץ לארץ כדי לעזור להם להשאר בחוץ לארץ?

אני לא רוצה.

התכנית של בנט כנגד התכנית של אראפט יש״ו
Bennett's Plan vs. Arafat's ysh"w Plan

Ha'Aretz: Israel Pledges $1 Million Aid to Houston's Flood-devastated Jewish Community
'For years the Jewish communities stood by Israel when it needed their help; now it is our turn to stand by Houston's Jewish community,' Diaspora Minister Naftali Bennett says
The Associated Press Sep 04, 2017 
Naftali Bennett
Bennett says that "for years the Jewish communities stood by Israel when it needed their help; now it is our turn to stand by Houston's Jewish community." The aid money will be submitted for government approval at an upcoming Cabinet meeting. Harvey struck on August 25 and pounded the city with five consecutive days of heavy rains, causing an estimated tens of billions of dollars in damage. 
Israel said on Monday it will donate $1 million in emergency aid to Houston's Jewish community to aid in post-Harvey recovery efforts. Diaspora Affairs Minister Naftali Bennett said in a statement that the funds will be earmarked to help the 60,000-strong community repair and rebuild schools, synagogues and a community center damaged in the storm and floods.
Esser Agaroth (2¢):
After Hurricane Katrina, there was at least one Jewish community that raised millions of dollars to rebuild their destroyed synagogue.

Before Hurricane Harvey, there were several floods in Houston, which much caused damage to the Jewish community there. But like the Jews in the United States who rebuilt their synagogue, the Jews in Houston are stubbornly remaining in exile despite such events.

The time has long since arrived to leave galut (Exile).

And these Jews are Zionists?! Not at all. They do not mind helping these Jews for the Land of Israel. But they care only about their impression of the State of Israel and the nations.

You probably want to ask me if I shouldn't judge Bennett favorably, right?

Anyone who identifies as religious Zionist, but wants to hand over parts of the Land of Israel to Arabs, grant citizenship to many more Arabs identifying as "Palestinians," and to throw money (our income tax probably!) to Jews to rebuild their community abroad, not to immigrate to Israel, but to help these Jews remain in exile, does deserve any benefit of the doubt from me.

Do you want the taxes you pay the government to go to Jews in exile to help them stay in exile?

I don't.

Thursday, June 18, 2015

Renunciation of U. S. Citizenship: The Final Chapter

ראש החודש הרביעי תשע״ה


Disclaimer: I am not an accountant. I am simply relaying my own personal experiences, and what I did. I am not giving tax advice. You would do well to consult a Certified Public Accountant [CPA].*

On Monday, I sent in the last forms to the U. S. Government, I will ever need to send it. At least, I hope this the case. In the spring of last year, I renounced my U. S. citizenship. I did so, not for tax reasons, but for ideological ones. You can about the saga of my renunciation up until now, by clicking here.

As a single person, with only one source of income, and absolutely no investments, nor any other assets, and never more than a few thousand shekels in a checking account and very small pension fund, the forms I had to file included a 1040 (not a 1040A or 1040 EZ), plus the foreign earned income exemption. In my case, this was a 2555-EZ form. I also filed Foreign Bank and Financial Accounts Report [FBAR], for one year in which my combined bank account and pension fund actually reached above the $10,000 threshold.

To convert your shekel amounts to U. S. dollars, use the IRS’s Yearly Average Currency Exchange Rates Table for current and previous years.

In addition, I filled to fill out an 8965 form claiming an exemption from this for the year 2014. Would you imagine that the U. S. Government was considering obligating U. S. citizens living abroad to pay for ObamaCare coverage, even someone like me, who has not set foot on U. S. soil, save for embassies and consulates, since 1997?

Such hutzpah!

U. S. citizens living abroad do receive an automatic extension of the normal April 15 deadline for income tax reporting, making it June 15. My main concern, though, was the last form I had to file, as one who renounced citizenship in the previous year, was the 8854 form. As far as I know, the penalty for submitting an 8854 form, with a postmark after June 15, 2015, is $10,000, if it is determined that filing late was avoidable.

I might add that the 8854 form was never, I repeat never, mentioned to me, certainly not by any U. S. Government official involved in the processing of the renunciation of my citizenship.

I used to laugh at various individuals, both U. S. and non-U. S. citizens, who have criticized the U. S. for its imperialistic policies. Well, I do not know if I would call the U. S. Government’s far reaching, financial policies toward U. S. citizens, present and former, imperialistic. However, the U. S. does appear to assert control over them for as long as it can. Apparently, among all of the nations of the world, only the U. S. and Eritrea tax their citizens, who are living abroad (Isaac Brock Society).

The U. S. Government can, theoretically, still intrude into my life. Does that sound crazy and paranoid? Is that redundant?

If IRS officials do not believe in what I have reported to them, from what I understand, they can audit me, and request information and even request that my Israeli, as in foreign to the U. S., bank account be frozen, if I do not comply. Quite frankly, I believe this would be silly on their part, since I do not owe them any money, do not have any money, and it would cost them one heck of a lot more to audit and investigate me, than they would eventually be able to claim from me, which would be nothing, since that’s what I owe, and that’s what I have. Nothing.

Of course, if the U. S. Government decides to make an example out of me, as one of those ungrateful individuals who has dared to spend the required $450, now $2350, fee to renounce his precious U. S. citizenship, then they may do just that. But, the U. S. Government would never do anything like that. Or would it? For what? My 2¢ blog? Now, if you ask me, that would be just plain silly.

Did I fill out the forms correctly? I certainly believe that I did. I sure studied the procedures long enough.

Well, there is nothing I can do about it now.

*********

Israeli Post Office Information:
If you are worried about making it to the post office on time, in order to get your document filled envelops postmarked with a specific date, you should know that the pot office does have branches which are open later than 5:00pm. Agrippas and the main Yaffo St. branches are open until 6:00pm, and the Menta convenience store at the Pat Junction gas station is open until 10:00pm. Make sure to double check that they offer international registered mail during its late hours of operation. I guess people who had previously complained about picking up their mail at a gas station (link) won’t be complaining now, huh?

Of course, if you are really running late, you can always make the trek out to Ben-Gurion Airport, where you will find a branch open until 11:59pm.

I recommend sending any forms and supporting documents by registered mail. This way, you can not only prove that you sent them on time, but you also track and trace them.

*Note:
I have mixed feelings about recommending consultation with a CPA. I feel that I am darned if I do, and darned if I don’t. In order to get things done correctly, and thus keep the U. S. Government off of our backs, it would to our benefit to obtain professional assistance. On the other hand, are CPA’s, in their own way, passive collaborators with the U. S. Government?

Think about it. The more complicated tax regulations become, the more we need them, and thus, the more money they make.

On the other hand, even how supposedly simple my reporting obligations were, I cannot possibly imagine how I could have completed the process on my own, as I did, without the assistance of the two CPA’s who were kind enough to answer my questions without charging me.

Additional Resources:

IRS Out Of Israel

Isaac Brock Society

Thursday, November 15, 2007

The Tax Office

5 of the Ninth Month 5768

The tax office seemed to be the easiest office of the Israeli government to deal with.

I first encountered it three years into my "journey," as I like to call it.

Up until then, I was either exempt from taxes or my taxes were taken care of automatically. The first time people have to go to the tax office is when they have more than one source of income.

My fourth year in Israel, I had more than one job. I was teaching junior high school, as well as adult, night school. This is often the case with with teachers in Israel, at least when starting out. It is necessary to find two, sometimes three, part-time jobs in order to put together the equivalent of one full-time position.

By the way, two offices in the center of the country are located here:


Jerusalem
Israeli Tax Authority
Finance Ministry
Kanfei Nesharim Street 66
02-6545111

Giv'at Sha'ul, almost to Har-Nof
Greater Tel-Aviv Area
Income & Property Tax Dept.
Finance Ministry
Menachem Begin Way 125
03-7633333

Just south of the Azrieli Center


The process is fairly easy. Make sure to have the most recent pay stubs from all of your sources of income, tlushim in Hebrew. If you left a job in the middle of the year, you must make sure to have a letter from each previous employer, stating the final date of your employment. This will serve as "proof" that you are no longer employed there.

As always, don't forget your Te'udat Zehut (Israeli ID card). Bring your Te'udat Oleh (Immigrant ID & rights booklet) as well. You may be entitled to a tax break or even an exemption, depending on how long you have been in the country.

In the event you live in a development area, make sure you bring in proof of residence, either a Ishur Toshav or a Ishur Megurar. The address displayed on your ID card is not sufficient. This will entitle you to an additional tax credit. These days development areas are located only in the Negev Desert or the Gallilee. But double check.

Always xerox your tlushim and other documents. You will need to show the originals to the clerk, provide xerox copies. This is the general rule for government offices in Israel.

As soon as you are employed by more than one institution, you must make certain to go into your local tax office and report it. Otherwise you will find that the first paycheck you receive from your new employer will be 50 percent of what you thought it would be.

The tax authority automatically takes 50 percent out in tax, unless you show up with the documents to show that should be paying less than that. Most importantly, the deadline for taking care of this process in December 31, not April 15 of the following year. Meet this deadline, unless you want to go through the much longer and involved process of requesting a tax return from a past tax year.

In case you don't go in right away, don't worry. You should receive any over payments you may have made in your next paycheck. This includes any moneys owed to you after the readjustment of your tax rate.

This is the extent of my experience. If you have more complex situations, such as income from abroad, dividends, capital gains, interest from savings accoutants, etc., it would be well worth your while to consult an accountant. There are plenty of accountants who are certified both in Israel and in the U. S. {or Canada), who can advise you as to how to jungle your particular circumstances.

JANGLO [Jerusalem Anglo Protexia]
E-Group is a good place to ask other English-speaking immigrants for recommendations of accountants, or for anything else for that matter.

U. S. Tax Filing

And speaking of taxes, my first year in Israel, I knew I was expecting a huge U. S. tax refund. So, I wanted to make sure to file my U. S. tax forms. First I made sure the have my W-2 forms forwarded to Israel. I found it easy to renew my U. S. mail-forwarding order (which only lasts three months, I think). I had brought extra forms from the U. S. Nowadays, you can get can print them out from the U. S. Postal Service Website.

I was able to pick up my Federal tax forms at the U. S. Embassy in Tel-Aviv. Nowadays, they can be downloaded from the Internal Revenue Service website. You may even choose to e-file your taxes. U. S. tax returns are delivered to Israel by courier, and then sent our through regular Israeli mail. Generally, checks drawn on foreign banks take a couple of weeks to clear. My tax return was cleared by my bank immediately, as it was easily identified as a U. S. government check. For some reason, though, I strongly suspect that this is not the rule, but the exception, and may have even been a mistake on the part of my teller. After 10 years, it still sounds too good to be true.

And, of course, do not forget to avoid the bank on Sundays and U. S. [or you other country of origin's] holidays. Most Israeli banks will not process your checks when the bans they are drawn from are closed.

It may seem like a lot of information to remember. Still, though, the Israeli tax office was a pretty straight forward experience for me. Please post your comments with your experience here.

b'Hatzlahah