Members of the Maryland Association of Certified Public...

TAX ANSWERS

March 23, 1995

Members of the Maryland Association of Certified Public Accountants are answering readers' tax questions through April 15.

Q: I am a student whose only income during the year, besides some nominal interest on checking accounts, was earned overseas. I earned $900 during the year, from which taxes were withheld by the foreign government. Do I have to file a U.S. return? If so, what form do I use? Do I have to pay Social Security tax?

A: Since Social Security tax was not withheld, you must file a U.S. income tax return because you are liable for self-employment tax on the $900 you earned abroad. Since your income is under the amount required to file a return, there will be no federal income tax. When you file your 1040 form, include a schedule C-EZ and Schedule SE for the self employment tax. If you incurred any unreimbursed expenses in earning the $900, you may expense them on Schedule C to reduce your self-employment tax.

Q: I worked a full-time job and a part-time job and made only about $400 on that part-time job. Do I have to claim it or is there a minimum amount that you don't have to claim?

A: You must report all income on the W-2 forms you receive from full-time and part-time jobs. The IRS matches wage information that it receives from employers with the employees' tax returns to ensure compliance with the law.

The above advice is for general purposes only and is not intended as legal, accounting or tax advice. Specific situations may vary.

To submit a question, call Sundial, The Sun's telephone information service, at (410) 783-1800. In Anne Arundel County call 268-7736, in Harford 836-5028, and in Carroll 848-0338. Using a touch-tone phone, enter 6225 after the greeting. Push 1 to submit a tax question; state the question in full. Push 2 to hear a tax tip. Selected questions will be answered in the Business section. No questions will be answered by phone. Please leave your name and phone number.

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