US citizen living abroad -- filing US tax return.

Hello everybody.

I am a US citizen and my husband is a nonresident. We both currently live abroad. I didn't work during the entire tax year (no personal income of any kind). My husband did work for a local company. He's total gross earnings were about $20,000.00. How should we file our tax return with the IRS? When we lived in the US, we always used a CPA to do our taxes, but I can't find anyone here who could help us, so some of the questions might sound silly, sorry if they do. If we file a joint income tax return (my husband has a US social security number and he lived in the US before, but he is not a US resident or a citizen), then my questions are:

  1. Should we use form 1040 or 1040A? Our taxes should be really simple. We didn't make a lot of money and we didn't have any complicated income or whatever. Just the K and that's pretty much it, but we do have a child.
  2. On the 1040(A) form, who should be the primary taxpayer? Or should there be a separate 1040 for my husband and myself? Again, we are filing jointly.
  3. What should I put on the 2555 form? No employer, no income? Or should I put there my husband's employer and income? Any help would be greatly appreciated. Thank you in advance.

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Reply to
alisonlevi
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If I understand correctly you had no income during 2006 and your non- resident alien husband had no U.S. source income during 2006. If that is correct you are not required to file a 2006 U.S. income tax return. On the other hand, if by "local company" you mean your husband worked during 2006 in the U.S. while you still lived there then he does need to file a return.

If you file a joint return, your husband will have to pay taxes on his world wide income. If he has U.S. source income, a joint return with you MIGHT reduce your total tax liability.

It doesn't make any difference whatsoever unless you meet the threshold that requires Form 1040.

It doesn't make any difference whatsoever but you should do it the same way every year.

If you file a joint return with your husband, then he will be treated as a resident alien for U.S. income tax purposes. If he also had foreign source EARNED income, then he should complete Form 2555 if he qualifies to exclude that income from U.S. taxation.

More specific answers to your questions cannot be provided without knowing whether your husband and any U.S. source income. Also needed is information on when, if at all, he lifed in the U.S. during 2006.

Reply to
Bill Brown

If your husband is not a US citizen or greencard holder, he may not be required to file a US return. If he WAS NOT a greencard holder before you probably made an election (consciously or not) for him to be taxed on his worldwide income as though he were a resident. That election remains in effect until you elect out. Electing out is simple but it means that you cannot make the election again without IRS permission. However, if you do elect out, he does not have to report his income to IRS. If he was a greencard holder, no election was required -- he had a tax obligation in his own right. Now, if his greencard was surrendered, he no longer has a filing obligation. If you do file a joint return, you will be effectively making such an election. If you have no income, you have no filing requirement. Should you chose to file jointly, you must include ALL worldwide income on that return. The exclusion, using Form 2555, is personal to each of you. You cannot use his exclusion and he cannot use yours. The person earning the money must meet all qualifications on his/her own in order to claim the exclusion. In the event you both have income, you both must file Form 2555 to claim the exclusion of any income. You don't say where you are, so specific advice is not possible. I work with clients in many locations, am an expat myself, am a CPA (California), and specialize in expat returns. Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans

Reply to
L K Williams

Answered in us.taxes already

Reply to
parrisbraeside

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