Page 37 - Foreign Service Journal - February 2013

This is a SEO version of Foreign Service Journal - February 2013. Click here to view full version

« Previous Page Table of Contents Next Page »
THE FOREIGN SERVICE JOURNAL
|
FEBRUARY 2013
37
AFSA NEWS
THE FOREIGN SERVICE JOURNAL
|
FEBRUARY 2013
37
WOMEN IN SECURITY AND DEVELOPMENT
FOCUS
AFSA NEWS
CALENDAR
2/6/2013
12:00 - 2:00 PM
AFSA Governing Board
Meeting
2/6/2013
Deadline for Art and
Academic Merit Awards
Applications
2/10 - 2/13/2013
AFSA Road Scholar Program
2/11/2013
2:00 - 3:30 PM
Seminar: Getting the Most
Out of Your TSP
2/11 - 2/13/2013
8th Annual Confict
Prevention, Peacekeeping &
Stability Conference
2/18/2013
Presidents Day:
AFSA Ofces Closed
2/20/2013
12:00PM - 1:00PM
Luncheon: 170th A-100 Class
2/28/2013
Deadline for AFSA Dissent
and Performance Award
Nominations
3/6/2013
12:00 - 2:00 PM
AFSA Governing Board
Meeting
3/6/2013
Deadline for AFSA Financial
Aid Applications
3/10 - 3/14/2013
AFSA Road Scholar Program
3/17 - 3/20/2013
AFSA Road Scholar Program
THE OFFICIAL RECORD OF THE AMERICAN FOREIGN SERVICE ASSOCIATION
Federal and State Tax Provisions for the Foreign Service
the area on qualifed ofcial
extended duty as a member
of the uniformed services,
the Foreign Service or the
intelligence community. The
fve-year period cannot be
extended by more than 10
years. In other words, Foreign
Service employees who are
overseas on assignment can
extend the fve-year period
up to 15 years, depending
on the number of years they
are posted away from their
home..
For 2012, the six tax rates
for individuals remain at 10,
15, 25, 28, 33 and 35 percent.
The 10-percent rate is for tax-
able income up to $17,401 for
married couples, $8,701 for
singles. The 15-percent rate
is for income up to $70.701
Continued on page 41
AFSA’s annual Tax Guide is
designed as an informational
and reference tool. Although
we try to be accurate, many
of the new provisions of the
tax code and the implications
of Internal Revenue Service
regulations have not been
fully tested. Therefore, use
caution and consult with
a tax adviser as soon as
possible if you have specifc
questions or an unusual or
complex situation.
Foreign Service employ-
ees most frequently ask
AFSA about home ownership,
tax liability upon sale of a
residence and state of domi-
cile. We have devoted special
sections to these issues.
James Yorke
(YorkeJ@state.
gov),
who compiles the tax
guide, would like to thank
M. Bruce Hirshorn, Foreign
Service tax counsel, for his
help in its preparation.
Federal Tax
Provisions
The Military Families Tax
Relief Act of 2003 contin-
ues to provide a signifcant
beneft for Foreign Service
families who sell their homes
at a proft, but would have
been unable to avail them-
selves of the capital gains
exclusion (up to $250,000
for an individual/$500,000
for a couple) from the sale of
a principal residence because
they did not meet the Inter-
nal Revenue Service’s “two-
year occupancy within the
fve years preceding the date
of sale” requirement due to
postings outside the U.S. In
relation to the sale of a prin-
cipal residence after May 6,
1997, the 2003 law provides
that the calculation of the
fve-year period for measur-
ing ownership is suspended
during any period that the eli-
gible individual or his or her
spouse is serving away from
PLEASE NOTE
This guidance applies
to the 2012 tax year, for
returns due on April 15,
2013. We expect there will
be a variety of changes to
the tax code for the 2013
tax year, but at present
we are not aware of any
possible changes that are
likely to apply to 2012.