Taxes 2555 Two Bona Fide Residences?

[Mike-G 0]

Hello,

I am a USC on Indefinite Leave to Remain (husband is UKC). We are in the final stages of the green card process to move back to the US. Like many people, I found out that I needed to file taxes for the past three years. 2014 and 2013 are pretty straight-forward for me, but I am having difficulty with 2012 as my husband and I lived in two foreign countries that year.

For 2012, I lived in Spain for the first half of the tax year as a resident (overall time period was June 2011 to July 2012). Then, we moved in July 2012 to the U.K. on the initial spouse visa (I now have ILR, which was granted in October 2014). I have filed and will file all tax returns as "married filing separately" as my husband was self-employed during most of that time and it really complicates things.

I only worked in Spain and I made 5,039 Euros, in the UK I was unemployed. I only went back to the US for a two week vacation to see family.

My question is... should I fill out the Bona Fide Residence section (and for which country as there is only space for one) or do the Physical Presence Test? It seems like the form is only designed for living in one country only. Although the instructions for the form says "country or countries," it doesn't tell you how to fill out the form if you had two foreign residences.

Should I fill out two 2555 forms or only one with an attached letter? Should I just write Spain as that is the only country where I worked?

Any help would be greatly appreciated as I am trying to get this all sorted soon so we can get an interview date.

Thank you

[Mike-G 0]

Oops, forgot to mention that Mike-G is my husband. I am his wife Kathryn (the USC). We just use the same username. Didn't want to confuse anyone

[Nich-Nick 3,354]

I think that you are only trying to exclude Spanish income in 2012, so that is the only country to be mentioned on your 2555. You don't require any UK income exclusion in 2012. You were physically present more than 330 days during a 12 month period that ended in 2012.

Edited March 17, 2015 by Nich-Nick

[Mike-G 0]

That's exactly what I was thinking... that I should mainly fill it out for Spain. Do you think I should still fill out the bona fide residence section or physical presence?

If I use physical presence, do I have to use the Jan to Dec tax year or can I use the 12 month period I was in Spain full time (June 2011 - July 2012)?

Thanks

[Nich-Nick 3,354]

That's exactly what I was thinking... that I should mainly fill it out for Spain. Do you think I should still fill out the bona fide residence section or physical presence?

If I use physical presence, do I have to use the Jan to Dec tax year or can I use the 12 month period I was in Spain full time (June 2011 - July 2012)?

Thanks

I believe bonafide residence (for a USC) requires being resident in Spain for an entire Jan-Dec tax year. Physical presence requires 330 days in a 12 month period that ends in the tax year in question (2012). I believe you qualify on presence. Check the details because I am going from memory.

2012 Instructions http://www.irs.gov/pub/irs-prior/i2555--2012.pdf

[Mike-G 0]

Hi Nick,

Thank you so muck for the information, I have done some more research and you are absolutely right, physical presence is the way to go.

Thanks again.

Kathryn