Filling in a 2555 for first married tax return...

[Paul 0]

Hi there

Thanks to advice from others on this site I was planning on filing a 2555 form with our first married tax return, but looking through it (and talking to the IRS on the phone) I've found I was out of my home country (the UK) for too long (I was there less than 330 days) because of all the time I spent visiting the US.

Has anyone else had this problem? The IRS have just said my wife (USC) should file as married filing seperately...

[Jenn! 918]

Hi there

Thanks to advice from others on this site I was planning on filing a 2555 form with our first married tax return, but looking through it (and talking to the IRS on the phone) I've found I was out of my home country (the UK) for too long (I was there less than 330 days) because of all the time I spent visiting the US.

Has anyone else had this problem? The IRS have just said my wife (USC) should file as married filing seperately...

Although you don't pass the physical presence test, would you pass the bonafide resident test?

[Mand 1]

You would pass the bonafide test, and the 330 days can be calculated from Feb to Feb, June to June, etc. It does not have to be an actual Jan to Jan calendar year.

[Jenn! 918]

You would pass the bonafide test, and the 330 days can be calculated from Feb to Feb, June to June, etc. It does not have to be an actual Jan to Jan calendar year.

Don't you have to have your tax year changed in order to do it like that?

[Mand 1]

No, you file for the tax year in effect. If I remember correctly, I think this also applies to the physical presence test too. I read so much about it when we were doing our taxes, but most of the info is after disappearing into a black hole in my head! Ok, just went to look for this....I read THIS page to page. It's from the IRS.

On page 14, Chapter 4 it states How to figure the 12 month period (for physical presence)

1. Your 12 month period can begin with any day of the month. It ends the day before the same calendar day, 12 months later.

2. Your 12 month period must be made up of consecutive months. Any 12 month period can be used if the 330 days in a foreign country fall within that period.

There's more too, but that's the jist of it.

[Paul 0]

The IRS told me I wouldn't pass the Bona Fide test either. Very frustrating- but my (USC) wife will file as married filing seperately and I just won't file, I guess.

[Mand 1]

Vacations and such trips to the U.S do not affect your status as a Permanent/ Bona Fide Resident of your home country. You should really print out the tax info I posted, as at the end of the day it's your taxes and not theirs. A lot of them do not know the ins and outs of filing the 2555 or 2555-EZ.

I got lots of wrong info too, and it was only after I read up on it, that I was able to say...They haven't a clue and I'm not listening to them!

[Paul 0]

Vacations and such trips to the U.S do not affect your status as a Permanent/ Bona Fide Resident of your home country.

They told me I wouldn't pass the bona fide residence test as I wasn't in the country for the whole of the calendar year (I moved to the US in Sept 05) and the rules on the physical presence test suggest if you're not in the foreign country for 330 days of any consecutive twelve month period ending in the tax year then you don't pass that either. Or have I got that wrong?

(I should add that I spent so much time in the US in 04 & 05 that in ANY twelve month period ending in 05 I found I'd spent less than 330 days in the UK)

Edited April 5, 2006 by Paul

[Mr. Big Dog 10,747]

Vacations and such trips to the U.S do not affect your status as a Permanent/ Bona Fide Resident of your home country.

They told me I wouldn't pass the bona fide residence test as I wasn't in the country for the whole of the calendar year (I moved to the US in Sept 05) and the rules on the physical presence test suggest if you're not in the foreign country for 330 days of any consecutive twelve month period ending in the tax year then you don't pass that either. Or have I got that wrong?

(I should add that I spent so much time in the US in 04 & 05 that in ANY twelve month period ending in 05 I found I'd spent less than 330 days in the UK)

A vacation outside your country of residence, doesn't disrupt your bona fide residency. I don't think so.

[Paul 0]

A vacation outside your country of residence, doesn't disrupt your bona fide residency. I don't think so.

But am I a bona fide resident if I left the UK before the end of the calendar year (September)- the instructions say resident aliens only qualify if you're a resident for an entire tax year...?

[Jenn! 918]

A vacation outside your country of residence, doesn't disrupt your bona fide residency. I don't think so.

But am I a bona fide resident if I left the UK before the end of the calendar year (September)- the instructions say resident aliens only qualify if you're a resident for an entire tax year...?

Note that it says AN entire tax year, not necessarily THE entire tax year for which you are filing. So if you were resident abroad for all of 2004, even if for not all of 2005, then you would still be a bonafide resident for that portion of 2005. Your maximum exclusion would be whatever percentage of the year you were resident abroad in 2005 times $80,000.

I'm not 100% sure on this though.

[Mr. Big Dog 10,747]

A vacation outside your country of residence, doesn't disrupt your bona fide residency. I don't think so.

But am I a bona fide resident if I left the UK before the end of the calendar year (September)- the instructions say resident aliens only qualify if you're a resident for an entire tax year...?

Note that it says AN entire tax year, not necessarily THE entire tax year for which you are filing. So if you were resident abroad for all of 2004, even if for not all of 2005, then you would still be a bonafide resident for that portion of 2005. Your maximum exclusion would be whatever percentage of the year you were resident abroad in 2005 times $80,000.

I'm not 100% sure on this though.

That's how I understood it as well.