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Lev
Lev, Tax Advisor
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Foreign National no longer is US -- Should I file Taxes

Resolved Question:

I am Indian national working in Jamaica since dec 2006, between 2002 and dec 2006 i lived in us under f1 and then h1b, filing taxes for years 2002 to 2006 including for 2006. since 2007 I fail the substantial presence test as i only come to us for 15-25 days in an year for visiting and I dont have a green card , just a visitor visa. I do have active bank accounts with interest and 1099-DIV income totalling less than $500 for each of the years between 2007 and 2010 which is my only US income. I have not filed any US taxes since 2007. Should I have been filing US taxes? If yes, would I get taxed after already paying 33% atxes in Jamaica? I am moving back to US to work and want to find out if I made a mess of my situation.
Submitted: 5 years ago.
Category: Tax
Expert:  Lev replied 5 years ago.

LEV :

Hi and welcome to Just Answer!


Because you filed the tax return as a resident - the IRS assumes you as an US resident for tax purposes and would treat all your worldwide income as taxable.


A tax clearance document will show that you have complied with the U.S. income tax laws before departing from the United States.If you was a resident of US in the past and became a non-resident - you need to obtain a tax clearance - see more information at Departing Alien Clearance (Sailing Permit)


After that - you will be presumed a non-resident for tax purposes and only income from US sources will be taxable.


If you have income from rental property located in the US - that should be claimed on your non-resident tax return.
If you were a nonresident - and your income from US sources were less than $3650 (for 2010) - you would not owe any taxes. Whatever taxes you paid n Jamaica will not affect your US tax liability. You may claim a credit for foreign taxes only if you were an US resident.


Please let me know if you need any help or clarification.


 

Customer:

Hi Lev,

Customer:

Thank you for the answer.

Customer:

What should be my next step? Like I explained earlier, My last tax return was filed from outside US in March of 2007 for the tax year 2006, I left towards end of december. I never filed the departing alien clearance since then. My only income in US since then has been interest on bank accounts and dividends on some mutual funds/ shares all amounting to under $500 each of the years. I have been paying taxes as a Jamaican resident for 2007-2011. Also for all these year I fail the substantial presence test (31 days/ yr or 180 days/3yr). No I am moving back to US as a worker and will be considered resident when I file this years returns 2012. My questions are, 1. How do I clear myself with IRS? 2. Is there a way to file the Departing alien clearance retroactively? 3. Basically how do I get out this whole mess and whether this si something I could on my own (I should be able to find the 1099s etcfor all years and copy of my return for 2006) or do you recommend a tax comapny or a lawfirm?

Lev and other Tax Specialists are ready to help you
Customer: replied 5 years ago.

What should be my next step? Like I explained earlier, My last tax return was filed from outside US in March of 2007 for the tax year 2006, I left towards end of december. I never filed the departing alien clearance since then. My only income in US since then has been interest on bank accounts and dividends on some mutual funds/ shares all amounting to under $500 each of the years. I have been paying taxes as a Jamaican resident for 2007-2011. Also for all these year I fail the substantial presence test (31 days/ yr or 180 days/3yr). No I am moving back to US as a worker and will be considered resident when I file this years returns 2012. My questions are, 1. How do I clear myself with IRS? 2. Is there a way to file the Departing alien clearance retroactively? 3. Basically how do I get out this whole mess and whether this si something I could on my own (I should be able to find the 1099s etcfor all years and copy of my return for 2006) or do you recommend a tax comapny or a lawfirm?


Expert:  Lev replied 5 years ago.

 

What should be my next step? You need to obtain a tax clearance

My only income in US since then has been interest on bank accounts and dividends on some mutual funds/ shares all amounting to under $500 each of the years. I have been paying taxes as a Jamaican resident for 2007-2011. Also for all these year I fail the substantial presence test (31 days/ yr or 180 days/3yr).

Based on that information - you are not required to file your US tax return for these years providing you will have the tax clearance.

No I am moving back to US as a worker and will be considered resident when I file this year returns 2012. My questions are,

1. How do I clear myself with IRS?

You need to obtain a tax clearance.

2. Is there a way to file the Departing alien clearance retroactively?

Yes - you may file late.

3. Basically how do I get out this whole mess and whether this is something I could on my own (I should be able to find the 1099s etc for all years and copy of my return for 2006) or do you recommend a tax company or a law firm?

Yes - you may file on your own. All required information you will find in this IRS article - http://www.irs.gov/businesses/small/international/article/0,,id=97256,00.html

Unfortunately - I may not recommend any specific service. You may use any tax preparation service. You do not need an attorney - your situation is not as complex.

 

Let me know if you need any help.
Customer: replied 5 years ago.
Thanks that clarifies the situation.
Customer: replied 5 years ago.
Ok, Just talked to IRS and they put me through to a Tax Law department. He says the 2063 or 1040C is filed only before leaving. He says filing it now is a mute point. He says since I filed my return and got a refund after leaving I will not have any issues and I do not need to send any of those forms. He says I can file my this years return just normally.

What do you think?
Expert:  Lev replied 5 years ago.

I would say - have a record of that conversation including the name of the person and time of the conversation - so you will provide that reference if any questions from the IRS will come in future.

And follow directions the IRS agent told you.

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