Tax form review request for back filing taxes

[markwebb 5]

Hello Friends ,

 

I have not lived in the US for the last 18-19 years and since I am processing IR1 via DCF for my wife , I am trying to establish US domicile. 

I have filled the form for the year 2019 and would like someone to review it. Your help is greatly appreciated guys. 

Note: I have worked from May 2019- Jan 2020 and unemployed from 2017- May 2019 in the UK.

 

 

 

Should I prepare the 2018 and 2017 forms in the similar way ?

 

[Wuozopo 4,293]

The tax return is required for your I-864, so that's the main reason you'll need it. You can easily show London your intent to reestablish domicile. Being gone 18 years is not really of a temporary nature so intent to reestablish is the route I would take. And as an America citizen, filing a tax return is required by the IRS when you have earnings over the filing threshold. 

 

Form 1040

You haven't reported what you earned in 2019. Your foreign income, converted to US dollars, has to be entered in Line 1. It is the exchange rate for the time period earned. 

 

Schedule B

You have reported no interest earned. If you earned any interest or dividends on any investments in the UK, then list it and carry the totals to Form 1040. Just mentioning that in case, like your wages, you didn't think UK investment earnings counted. They do, even if they just rolled back into the account. 

 

For 2017 and 2018, you had no income so no reason to file.

 

Edited January 19, 2020 by Wuozopo

[markwebb 5]

@Wuozopo thanks bud , your comments came in handy and I prepared 2 extra forms - 1: Schedule 1 and 2: Form 2555

 

Now I think I am done with 2019 forms , how do I download the 2017 version of the forms ( I initially thought the tax period is from April -March but it's from Jan-Dec and I worked from 2 months in 2017 ).  So I am thinking I need the forms from previous years . Where can I download those ?

 

also when I mail the  returns for 3 years , do I post them together or separate envelopes ? 

[Wuozopo 4,293]

2 hours ago, markwebb said:

@Wuozopo thanks bud , your comments came in handy and I prepared 2 extra forms - 1: Schedule 1 and 2: Form 2555

 

Now I think I am done with 2019 forms , how do I download the 2017 version of the forms ( I initially thought the tax period is from April -March but it's from Jan-Dec and I worked from 2 months in 2017 ).  So I am thinking I need the forms from previous years . Where can I download those ?

 

also when I mail the  returns for 3 years , do I post them together or separate envelopes ? 

https://www.irs.gov/forms-pubs/prior-year

 

You’re going to find that 2017 forms are totally different because 2018 marked a major change in tax forms, laws, etc.Big overhaul.  No Schedule 1. Your foreign income exclusion calculated on Form 2555EZ transfers to Form 1040 Line 21 in parentheses to represent a negative number. It’s where you subtract your exclusion. See pic below. Form 2555EZ is just a shorter version of  2555 leaving off all the housing exclusions and things that don’t apply to you anyway. There’s one for 2018 also, but they eliminated the EZ for 2019. 

 

 

[Wuozopo 4,293]

MAILING
 

Current taxes (2019) will have an address somewhere in the instructions where yours should be mailed depending on your address.
 

Past due forms have a special address for mailing. (I’m thinking Austin, TX?)  When on the IRS site, just type in the search box “where to mail past due tax filing” or similar until you find something. It’s there somewhere.
 

If they have different addresses, then different envelopes. If you get lucky and current foreign and filing late all go to one center, then same envelope. You can find it for yourself without me searching for it. 

[markwebb 5]

@Wuozopo buddy need some help in 2017 form .

 

I earned 1821$ in 2017 for 2 months I worked for so while filing 2555-EZ in line 18 I have a doubt .

So I am putting 1821 in line 18 now I need to subtract this amount from my Income in form 1040

 

This is how my income on 1040 looks like :

 

 

but line 22 says combine 7-21 to get the total income . Should I put  -1821 in line 21 then or what I have put is correct ? 

 

[Wuozopo 4,293]

1 hour ago, markwebb said:

@Wuozopo buddy need some help in 2017 form .

 

I earned 1821$ in 2017 for 2 months I worked for so while filing 2555-EZ in line 18 I have a doubt .

So I am putting 1821 in line 18 now I need to subtract this amount from my Income in form 1040

 

This is how my income on 1040 looks like :

 

 

but line 22 says combine 7-21 to get the total income . Should I put  -1821 in line 21 then or what I have put is correct ? 

 

You didn’t look at my picture example or read what it says on Form 2555EZ where you calculate the allowed Foreign Earned Income Exclusion. 
 

18. Foreign earned income exclusion. Enter the smaller of line 16 or line 17 here and in parentheses
on Form 1040, line 21. Next to the amount enter “2555-EZ.” On Form 1040, subtract this amount
from your income to arrive at total income on Form 1040, line 22 . 

Parentheses means negative number. These both mean “minus 1821”:

-1821

(1821)  IRS says use this one

 

The IRS has to say “combine” (add)  because most will have a positive amount for other income. Here’s your calculation:

[11] + [ -1821] = [-1810]
enter it as (1810.00)

 

But hold the horses——

If your total income for 2017 (before any excluding) is $1832, then you don’t have to file a tax return. See the instructions for 2017 https://www.irs.gov/pub/irs-prior/i1040gi--2017.pdf

There is a chart on page 8 that tells the threshold for having to file.

$10,400 if you were single at the end of 2017

$4050 if you were married in 2017 and filing separately.

 

You are below both of those so no matter If married or single, you do not need to file 2017.

 

 

 

 

Edited January 20, 2020 by Wuozopo

[Wuozopo 4,293]

@markwebb
 

Sorry...I posted that wrong. Guess I need more tea. 

Add

[ 1821] salary

[ 11 ] interest

[ -1821] exclusion  

 

equals 11 for line 22.

 

 

 

Edited January 20, 2020 by Wuozopo

[FA081 9]

On 1/20/2020 at 3:39 PM, Wuozopo said:

You didn’t look at my picture example or read what it says on Form 2555EZ where you calculate the allowed Foreign Earned Income Exclusion. 
 

18. Foreign earned income exclusion. Enter the smaller of line 16 or line 17 here and in parentheses
on Form 1040, line 21. Next to the amount enter “2555-EZ.” On Form 1040, subtract this amount
from your income to arrive at total income on Form 1040, line 22 . 

Parentheses means negative number. These both mean “minus 1821”:

-1821

(1821)  IRS says use this one

 

The IRS has to say “combine” (add)  because most will have a positive amount for other income. Here’s your calculation:

[11] + [ -1821] = [-1810]
enter it as (1810.00)

 

But hold the horses——

If your total income for 2017 (before any excluding) is $1832, then you don’t have to file a tax return. See the instructions for 2017 https://www.irs.gov/pub/irs-prior/i1040gi--2017.pdf

There is a chart on page 8 that tells the threshold for having to file.

$10,400 if you were single at the end of 2017

$4050 if you were married in 2017 and filing separately.

 

You are below both of those so no matter If married or single, you do not need to file 2017.

 

 

 

 

Hi,

 

could I get some clarification please? 
 

i am applying for my husband in London for his i130. I am American by birth but have been in the UK since I was 13 and I am now 28, hence did not live an ‘adult’ life there and nor have I ever filed taxes...

I have been employed in the UK earning at most £20k gross and I was not aware of filing taxes. Question is, when it comes to the support stage will this look badly towards our case? 
I intend on returning in the next couple of weeks and getting employment in the US which will be above the poverty line threshold. Meanwhile, my husband earns well and we have cash assets. 
 

any advice would be appreciated. 

[Wuozopo 4,293]

3 hours ago, FA081 said:

Hi,

 

could I get some clarification please? 
 

i am applying for my husband in London for his i130. I am American by birth but have been in the UK since I was 13 and I am now 28, hence did not live an ‘adult’ life there and nor have I ever filed taxes...

I have been employed in the UK earning at most £20k gross and I was not aware of filing taxes. Question is, when it comes to the support stage will this look badly towards our case? 
I intend on returning in the next couple of weeks and getting employment in the US which will be above the poverty line threshold. Meanwhile, my husband earns well and we have cash assets. 
 

any advice would be appreciated. 

As the petitioner, you have to be the primary sponsor on the Form I-864 Affidavit of Support. You could have a joint sponsor, somebody else who makes enough to sponsor your husband, if you didn't get US employment. Or you could cover it with assets.  I wouldn't say that would look bad because it's pretty common when a couple has lived abroad .

 

But as the spouse you still have to fill out form I-864 even if you get a joint sponsor to do one as well. One of the requirements is submit your latest US tax return or a statement why you were not required to file. So it's not about looking bad financially, it is you can't submit the required form without at least one US tax return if you had UK income, even if it said zero income that counted toward sponsorship. A valid reason for not filing would be unemployed so no income to report on a tax return, but living abroad is not a reason. The visa could not be approved until you produced your "most recent tax return" at the interview stage. You need to file 2019, 2018, 2017,  to satisfy the immigration basic paperwork requirement for the I-864 Affidavit of Support. They ask for numbers off three tax filings on the form but you only turn in 2019. Any other previous years back filing are between you and the IRS and would not affect his immigration interview in my opinion. You won't owe the IRS any taxes.

 

As a start, figure out exactly what you earned each of those calendar years and convert to dollars at the exchange rate at the time earned. The threshold for filing is different every year so see if you have to file.

Edited January 24, 2020 by Wuozopo