US/Overseas Taxes (for affidavit of support) please help!

[Chloezilla 2]

Hi guys,

Long story short: husband (USC) been living off GI Bill since 2009 (which isn't considered taxable income), moved to UK on spouse visa December 2011. Worked in UK for UK company February - August 2012. Moved back to USA December 2012.

Hubs didn't file US taxes whilst living/working in the UK. Called IRS and they didn't give a straight answer on whether he needed to or not...so he didn't.

Now we're at the NVC stage and worrying because he doesn't have a tax return for 2012 (he has a great job now and exceeds poverty level etc).

Has anyone got any experience with this kinda issue?

We figure he might aswell just go ahead and file now, but we can't get any good advice from IRS or tax professionals.

Can anyone recommend a company or any advice at all? Would be GREATLY appreciated!!

Thanks in advance

[speedwell 224]

Hi guys,

Long story short: husband (USC) been living off GI Bill since 2009 (which isn't considered taxable income), moved to UK on spouse visa December 2011. Worked in UK for UK company February - August 2012. Moved back to USA December 2012.

Hubs didn't file US taxes whilst living/working in the UK. Called IRS and they didn't give a straight answer on whether he needed to or not...so he didn't.

Now we're at the NVC stage and worrying because he doesn't have a tax return for 2012 (he has a great job now and exceeds poverty level etc).

Has anyone got any experience with this kinda issue?

We figure he might aswell just go ahead and file now, but we can't get any good advice from IRS or tax professionals.

Can anyone recommend a company or any advice at all? Would be GREATLY appreciated!!

Thanks in advance

He needs to file if he made enough US income to file. US income may include income he made while he was physically in the UK, if he was paid by a US company or US branch of an international company. Income he made while in the UK on a work visa, paid by a UK entity, could fall under the foreign income exemption. He will be able to claim both kinds of income on his 2012 taxes but he must file now and pay any applicable tax to try to avoid possible penalties for late filing. If he did not make enough US income to file, he needs to write a letter to that effect to include with your AOS packet and think about a joint sponsor.

[Chloezilla 2]

Thanks for the reply. The only income he made in the UK was in british pounds from a British company. He paid UK taxes every month. I have read about the foreign income exemption but I don't really understand it!

Are you saying that if the income was solely foreign he doesn't have to file?

I'm sure we wouldn't need a joint sponsor purely for tax returns?? He makes almost $40,000 a year now.

Thanks!!

[Love's JAA 100]

US citizens need to report worldwide income wherever earned. There's a form to file with the return whereby they can claim an exclusion on qualified foreign income on form 2555. Separately, if that doesn't qualify, you can file for a foreign tax credit for the UK taxes paid on form 1116. The other thing is to look to the tax treaty between the two countries. The simple answer though is if his income (in US dollar equivalent) is above the filing requirement he should file a return, whether he ends up owing tax or not.

[daphoknee 4]

My husband is in a similar situation as yours. Regardless of where you live, if you are a US citizen, you MUST file whether you have US income or foreign income.

We had to file the form 2555 to declare his foreign earned income in Canada and get that excluded from his US taxes. I tried to do it myself online but got worried I didn't fill it in correctly. So we went with HR Block and their fee is a little over $200 for just the admin/service fee, we don't owe any to the IRS nor getting any back.

If you are filing for foreign earned income exclusion make sure you meet ALL the IRS requirements for US citizens living abroad.

[Chloezilla 2]

Thanks for your replies!!

Hubs is gonna get them filed this weekend, hopefully it's smooth sailing! And not too expensive.

God, I love this forum.