International Tax Question

[tomgreen_84 0]

Hey Everyone,

 

I have an odd situation here and looking for some insight. 

 

My partner(LPR) and I (us citizen) are working temporarily with a non profit. Looking at different tax options, right now using the Foreign Income Exclusion, gives us a 4,000 dollar tax bill. I am wondering what would the implications would be if we changed our tax home to the country we are working in, so we could use the Foreign Income Tax Credit. 

 

I am wondering:

1) What implications would changing our tax home have for us regarding USCIS? 

2) What implications would filing married but separately have? (That way the US citizen could claim the credit, while the LPR would not) 

 

 

 

Facts about us: 

1) waiting on citizenship interview that should come by early fall.  We have an expedited N400, which allows us to be out of the country and not worry about physical presence. 

2) Maintained our residence in the US. 

3) Waiting on a reentry permit.

4) Don't make a ton of money  

[Wuozopo 4,293]

14 hours ago, tomgreen_84 said:

My partner(LPR) and I (us citizen) are working temporarily with a non profit. Looking at different tax options, right now using the Foreign Income Exclusion, gives us a 4,000 dollar tax bill.

Did you do a separate 2555 for each of you? Does the total of both foreign incomes appear on Line 8d of Schedule 1 and then transferred to the 1040 Line 8. Just questioning if you figured it correctly because all of the taxable part of the foreign wages should be excluded. You could have tax on income from  investments. Is the $4000 from a big year for capital gains, as an example?

 

14 hours ago, tomgreen_84 said:

1) What implications would changing our tax home have for us regarding USCIS? 

2) What implications would filing married but separately have? (That way the US citizen could claim the credit, while the LPR would not) 

I don’t think that would affect your dealings with USCIS  They don’t audit all the details of your tax return. They just want to know returns have been filed as a sign of good moral character.
 

Tax home is an IRS term  meaning “your regular or principal place of business, employment, or post of duty, regardless of where you maintain your family residence.”  I guess I don’t understand your question about “changing” your tax home. You both work abroad. Do you want to pretend one of you does not work abroad?

 

[tomgreen_84 0]

Will changing our tax home get us in trouble with USCIS, specifically, in regards to abandonment of our residence in the USA.