do I have to file my taxes as a non-resident abroad?

[y030910 0]

Each country has its own rules for what is considered tax residency. (My home country for example is 6 months plus one day in the year.) You'd need to check that with a tax expert from where you are living.

If I misunderstood and you are still asking about US residency - you don't have an option. You have a green card, under the green card test you are obligated to file. Period.

I do want to and will file. I just need to determine which test I pass.

Edited April 11, 2016 by y030910

[Joshua@Tinz 52]

By the way the requirement for foreign earned income exclusion for a Us citizen or resident alien is to be present in a foreign country 330 days in a 12 month period.

[IcezMan_IcezLady 582]

You have 7 days to file. So make it quick!

[y030910 0]

You have 7 days to file. So make it quick!

I was outside of the US on 31st December so don't I have an automatic extension till 15 June this year?

[MariaR323 199]

I think the big issue here is OP has LPR status (green card) and presumably has been out of the U.S. working, earning income for quite some time. Whether or not he files a regular (resident) Form 1040 is not the issue... the issue is in trying to avoid "double taxation" the OP has to prove he was in a foreign country for X amount of time to qualify for either the exclusion or credit.

If I'm assuming and reading everything correctly... I'm not sure Immigration would know what the OP reported on a Form 1040 since I don't believe IRS and Immigration share info (yet), but if Immigration does ask to review the tax returns and catch the foreign earned income exclusion and/or credit - that's where the flags will be raised high.

Edited April 11, 2016 by MariaR323

[y030910 0]

I think the big issue here is OP has LPR status (green card) and presumably has been out of the U.S. working, earning income for quite some time. Whether or not he files a regular (resident) Form 1040 is not the issue... the issue is in trying to avoid "double taxation" the OP has to prove he was in a foreign country for X amount of time to qualify for either the exclusion or credit.

If I'm assuming and reading everything correctly... I'm not sure Immigration would know what the OP reported on a Form 1040 since I don't believe IRS and Immigration share info (yet), but if Immigration does ask to review the tax returns and catch the foreign earned income exclusion and/or credit - that's where the flags will be raised high.

I have been earning for less than a year so I thought now was the time to file the tax return.

[IcezMan_IcezLady 582]

I was outside of the US on 31st December so don't I have an automatic extension till 15 June this year?

You seem not to be aware that the "game" you are trying to play might come back to bite you. You can't get a GC to enjoy American resident privileges and shy away from your obligation. The "non-resident" classification in your situation only applies to citizens or relatives who do not have residency in the US. But you do, because of the GC you have.

You have to file for automatic extension in other to get it. it is form 4868.

You are a resident, stop seeing yourself as a non-resident. If you use an online filing software like TurboTax, it asks for foreign income. If you are wondering if you should then, there you have it.

So like i said, you have 7 days to file anything you need to file. Consult a tax professional.

Edited April 11, 2016 by IcezMan_IcezLady

[MariaR323 199]

Yes, you need to file a tax return. The issue is you need to asses the risks and consider the repercussions of HOW you will file said tax return.

[y030910 0]

You seem not to be aware that the "game" you are trying to play might come back to bite you. You can't get a GC to enjoy American resident privileges and shy away from your obligation. The "non-resident" classification in your situation only applies to citizens or relatives who do not have residency in the US. But you do, because of the GC you have.

You have to file for automatic extension in other to get it. it is form 4868.

You are a resident, stop seeing yourself as a non-resident. If you use an online filing software like TurboTax, it asks for foreign income. If you are wondering if you should then, there you have it.

So like i said, you have 7 days to file anything you need to file. Consult a tax professional.

Okay I will file it asap. Thanks for your help.

Edited April 11, 2016 by y030910

[Joshua@Tinz 52]

If it was less the a year then the foreign earned income exclusion can be taken out of the equation and you need to file as if you were here the whole time. 330 days is the mark for claimed FEIE

[y030910 0]

First issue:

You are mixing up taxes and immigration. To the IRS, you are a RESIDENT and file form 1040 if you have a valid greencard. There is also a non-resident tax form (1040-NR) for people in the US on a visa for example who earn money while in the US. You are a resident for tax purposes no matter where in the world you are working or sleeping at night.

Second Issue:

The filing threshold means how much you have to earn anywhere in the world before you have to file a tax return at all. That's for people in the US or temporarily out like you. Low income means no filing.

I gave you a link to the 1040 instructions. See page 8.

If you are single, file a return if you earn $10,300 or more.

If you are Married Filing Separately, file a return if you earned $4000 or more.

See the instructions page 8 for the other filing statuses like joint..

So if you are over that in income, you file as a resident, Form 1040.

Third issue:

There is a foreign income exclusion Form 2555 which may qualify you to exclude a maximum of $100,800 of your foreign income from the tax return you are required to file. You can qualify on physical presence in the foreign country (if you have been there a certain number of days) or bonafide resident of the foreign country (if you have a visa or passport that allows you to legally be in that foreign country and work). Read the IRS instructions for Form 2555 and determine if you qualify. Fill out Form 2555 if you do.

The alternative option to excluding the foreign income is the Foreign Tax Credit. You claim all income, figure the tax it generates, then do a foreign tax credit. It would be for example your US tax figured is $4000. You already paid $3998 Income tax to the foreign country. You get that amount as a credit and owe the US only $2. There are forms to fill out for that as well. Learn more https://www.irs.gov/Individuals/International-Taxpayers/Foreign-Tax-Credit

I have read through Page 8 of 1040 which shows me that I have to file my tax.

I don't think I qualify for the Bona Fide Residence since my stay is interrupted but I have spent 330 days in my home country (UK) with interruptions caused by my travel back to the US.

Is there a difference between the Bona Fide Residence and Physical Presence other than what I have stated above? Also is the 1040 meant to be sent with 2555?

Edited April 11, 2016 by y030910

[Nich-Nick 3,354]

I think he is asking about his eligibility to qualify for the Foreign Exclusion. The IRS sets the terms based on his physical presence in the foreign country or his bonafide residence in the foreign country. For example he couldn't go work in a foreign country for three months and expect to be excused of that money he earned there from US taxation. But a long physical presence in a foreign country might make a US taxpayer excused from American taxes on his foreign earned income. He still has to file in the US and report his foreign earnings, but they may not be taxed.

To the OP. I don't know the country where you are, for how long, if they have a tax treaty with the US, or have all the details of qualifying on days memorized. You are going to have to read that and work it out for yourself. This publication might help because you are a resident alien abroad. https://www.irs.gov/pub/irs-pdf/p54.pdf see the chart on page 13.

Edited April 11, 2016 by Nich-Nick

[y030910 0]

I think he is asking about his eligibility to qualify for the Foreign Exclusion. The IRS sets the terms based on his physical presence in the foreign country or his bonafide residence in the foreign country. For example he couldn't go work in a foreign country for three months and expect to be excused of that money he earned there from US taxation. But a long physical presence in a foreign country might make a US taxpayer excused from American taxes on his foreign earned income. He still has to file in the US and report his foreign earnings, but they may not be taxed.

To the OP. I don't know the country where you are, for how long, if they have a tax treaty with the US, or have all the details of qualifying on days memorized. You are going to have to read that and work it out for yourself. This publication might help because you are a resident alien abroad. https://www.irs.gov/pub/irs-pdf/p54.pdf see the chart on page 13.

A little background on me; I am from the UK. I was studying here when I got a green card but my education and professional certification go hand in hand and this is the reason why I am still here. So I have been in the UK for at least 330 days with interruptions caused due to my travel back to the US, its just that I have been completing my certification for less than a year which has earned me income for less than a year. I now have a valid reentry permit and some other evidence to show my intent to return to the US asap such as maintaining an address back in the US. I am just scared of doing the wrong thing and risking my green card and that's why I am here asking for advice.

Do you guys think that I am eligible for the tax exclusion due to the physical presence test? Nick, the chart you have told me to look at does show that I am eligible for tax exclusion.

Also thank you very much for your contributions.

Edited April 11, 2016 by y030910

[MariaR323 199]

Ok, now I understand a bit more.

First off, nobody here can tell you whether or not you are eligible for the physical presence test since we don't know your exact dates and all that good stuff. What I can tell you is you need to read and do the calculation on the physical presence test counting a full 24 hr day as 1 physical day present. Dates you travel are not counted towards that test.

Now, with that said, if you test out and qualify yourself for that foreign earned income and/or tax credit - please consider the repercussions of that as it relates to your green card. If you are worried about risking your green card, IMHO, you most definitely are risking your green card by stating you were out of the country THAT long. As to how risky that is, I don't know.

[SusieQQQ 11,586]

I do want to and will file. I just need to determine which test I pass.

Again - you don't get to determine this. You have a green card, the green card test applies. Period. No choice.