I-864, foreign earned income and tax returns

[Tiger33 0]

I am a US citizen living and working in Vietnam for over a year now on a work permit with a temporary resident card. I plan to marry my Vietnamese girlfriend this year and move back to the US together with her in 2-3 years.

Since I am earning foreign income, how should I file my tax returns to ensure I-864 is approved?

I was told by my accountant to use form 2555 "Foreign Earned Income Exclusion" to avoid being double taxed since I am already paying taxes in Vietnam. In form 2555, foreign earned income is excluded from taxable income by the IRS if the annual foreign income is less than $84K (approx).

However, if using form 2555, taxable income would be "0" in my tax returns. Would that be a problem since I-864 requires minimum annual (taxable?) income of about $25K (125% of poverty line)?

I want to make sure using form 2555 will not disqualify me when sponsoring my wife.

I was told by another lawyer to use instead form 1116 "Foreign Tax Credit" because taxable income would not show up as "0". But I am unsure about this.

Can someone clarify? Is it ok to file using form 2555 or should I use 1116?

Thank you.

[redglasses 1]

You cannot be a sole sponsor no matter how much you earn unless your current income is continuous in the US.

Those who quit their job in a foreign country and move back to the US have to use assets (3 times poverty line) or find a joint sponsor.

My husband had filed 1040 and 2555 together each year while he resided in Japan.

Yes, the total income and adjusted gross income become $0 when you use 2555.

However, you shouldn't worry about it for now because you are not qualified to be a sole sponsor anyways (again, unless your income is continuous in the US.)

[Stewart 0]

You cannot be a sole sponsor no matter how much you earn unless your current income is continuous in the US.

Those who quit their job in a foreign country and move back to the US have to use assets (3 times poverty line) or find a joint sponsor.

My husband had filed 1040 and 2555 together each year while he resided in Japan.

Yes, the total income and adjusted gross income become $0 when you use 2555.

However, you shouldn't worry about it for now because you are not qualified to be a sole sponsor anyways (again, unless your income is continuous in the US.)

I was also told by the DCF consul that foreign income would not count, unless you can show that this income will continue after you move back to the U.S. (e.g. with letter of employment). So the other alternative is showing assets (basically liquidable assets - savings/checking, stocks, bonds, money market) that is three times 125% Poverty Level (18,212 x 3 = $54,636 for household size of 2) and/or getting joint sponsor.

Good luck, and God bless.