A US citizen or green card holder may exclude upto $87,600 (for 2008) or income earned in a foreign country. Your tax home has to be outside the US. Each spouse is entitled to this exclusion. However, one spouse cannot utilize the other spouses unused exclusion.
How do you qualify: You need to have moved your tax home outside the US, and then see if you qualify under the bona fide residence test or the physical presence test. Contact us if you need further details.
If you had federal tax withheld while working overseas you may be able to claim a refund. You can also claim a credit for foreign taxes paid.
Expatriation: If you decide to give up your green card or US citizenship, you have strict rules to comply with. You need to request a ruling from the IRS.
Spouse is a Non-Resident Alien: You could still file married filing joint. Contact for further details.
We have an enrolled agent on our staff. Please contact us for any questions you may have.
| You may be able to claim a refund! Have you had US federal or state tax witheld on your US W-2 while working overseas. It may be possible to claim a refund if you qualify for the foreign earned income exclusion. Do you have Excess Foreign Tax Credit on your US tax return? You may be able to 'carry back' the excess credit and claim a refund. Many expatriates have this excess foreign tax credit the year they return to the US. You should keep a track of this, it could be valuable. Contact me and I can see if this applies to you.
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