I need a bit of help from anyone who knows about this. My family moved here July 6th, 2011. I have filed for a 90 day extension for my taxes this year. I was in the US for only 8 days from last July to now. The Physical Presence Test says you have to be on foreign soil for 330 of those. Does that mean I can file my return on July 6th 2012 and fulfill the exemption? Any help would be awesome.
Yes but you may also qualify under the bona fide residence rule
http://www.irs.gov/businesses/small/...=96960,00.html
Once you qualify you will have to pro rata 2011 for the period in the USA vs abroad.
Bona Fide Residence has to be a full tax year. So from January 1st to the following January 1st. I will qualify for next years return.
I moved here in August '86, filed the extension papers for the first year, did bonafide afterwards.
No problem with the extension.
Tom
Did you do the extension and the physical presence test? If I read the rules right, I should be able to file July 7th of this year and I will have been here for more than 330 days in the 12 consecutive months.
Yes, and thereafter the bona fide residence.
You just need to file the need to show that you will meet the physical presence test the first year.
Tom
Perfect....good to know someone who came here mid-year and was successful in filing that way. Thanks so much.
Are you sure filing 2555 is the most beneficial for you?
Not always the case in the transitional year
Yes.....that is the form that my Tax software is recommending. My extension is filed, I just have to wait until July 7th to file.
Actually not exactly - check out IRS form 2350. In my first partial year as an expat (2005), I was able to file an extension until the end of Jan 2007 using this. At that point I could claim bona fide residency in a foreign country for a full tax year (2006) and this could then also be applied to the partial year of 2005.