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Open-ended overseas trip--how to handle U.S. taxes?

Hi,

I'm thinking of traveling overseas for a long-term trip next year, and could well be gone for over a year. My tentative plan is to file my 2009 federal and state taxes as soon as I get all my 1099s and W2s--in any case, NLT March 1st, and then leave on my trip.

Assuming I do that, and then end up returning to the U.S. after April 15, 2011, how would you all recommend I handle my 2010 taxes? I see a number of possibilities:

  1. Make sure I'm somewhere with reliable internet access in February or March 2011, and then do them via TurboTax for the web.
  2. Carry my 2009 tax file with me on my thumb drive, and do the taxes overseas, as in option #1.
  3. Take advantage of the overseas time extension and just get them done after April 15th, making sure I get them done before the time extension expires (is it four, or six months?).
  4. Don't worry about getting them done while I'm gone, and instead do them when I return (probably Summer 2011).

Please let me know what other alternatives are possible with this travel situation. I'm sure that lots of other people have had to deal with similar issues in the past!

In any case, I'll be selling most of my personal possessions and furniture before I leave, in order to raise travel money. If I don't sell my house beforehand, it will have renters in it. Other than that, I don't have any other "tax issues" like retirement or brokerage accounts to deal with. Not sure it I would be working overseas or not--I *do* have a 2nd passport from an EU country, so I suppose I *could* work if I wanted to, or wanted to find a job legally for awhile. I *am* aware that any overseas income *would* be taxable by the IRS.

Thanks,

Jean in VA

Reply to
Jean Barto
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I think you can do it any way you like, the only issue I can think of is that if you work abroad and want to take advantage of the foreign earned income exclusion, you need to file by the due date (including extensions). If you have not been abroad long enough by the due date to establish your eligibilty for the exclusion, you can request an extension until you expect to qualify, alternatively you can file without claiming the exclusion and then file an amended return later to claim the exclusion.

Reply to
S

There are a number of overseas tax preparers available to assist you with filing your local and US tax returns.

One thing you will need to be aware of is that the Foreign Earned Income Exclusion (which many people suggest as the best way to file) is not necessarily the best. Also, given your additional complications being overseas, it would be best to get started on your returns at the earliest opportunity, that is, when you get your slips.

Reply to
parrisbraeside

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