Hello, as a US Citizen she is required to report worldwide income on a Form 1040NR when not a resident. There are many exclusion, treaties and credits available so that she may not owe any taxes to the US, but would still have a filing requirement to claim these items showing why she owes no taxes. Did she have income or did she not work or have investments?
She had income as an Irish government employee. She has both US and Irish citizenship, but has never lived in the US before July of this year
Thank you for that information, roughly, how much does she make a year as an employee?
So does that mean she does not need to file a Federal Income Tax return?
She made in Ireland 38000 euros
But since moving to the US in July, she makes $50000
That amount would fall under the foreign earned income exclusion amount. She would need to file Form 1040NR with attached Form 2555 to report the exclusion. If she ever went over $91K or so in earnings, she could also claim a foreign tax credit for any Irish taxes paid on the same income.
BotXXXXX XXXXXne, she had a filing requirement, but will owe no taxes once filed
Does this answer your question?>
what timeframe does the 1040NR and 2555 cover ? she is 29 and until now, was never aware she had to file a tax form...
and is the 1040NR considered a federal income tax return? finally I presume she does not file W-2s, 1099s, etc
You should engage an EA or CPA to assist you with filing those missing returns, once filed she will be in compliance and the statute of limitations for audit will start.
1040NR is a federal income tax return yes
What's an EA or CPA mean?
And she probably has a foreign equivalent
of a W2, but no W2 until she got a US employer
EA = Enrolled Agent (like me) CPA= Certified Public Accountant
those are licensed tax professionals
Do you mind if I ask, the cost to through this process - as we never budgeted for this...?
Everyone is different, my best estimate would be around 200-300 per year filed.
what age are you meant to file from?
no age limit really, it's a matter of when income met thresholds. You would need someone to sit down with you and figure out what years she needs to file
I was doing research and are you familiar with this, i found on a website
:||A new IRS procedure will take effect on September 1, 2012. IR-2012-65. Once the rules kick in, you’ll be able to file delinquent tax returns for the past three years plus FBARs for the past six years. That’s less than the usual eight amended returns and eight FBARs for OVDP participants.
FBARS are not income tax returns, but are separate information returns about foreign accounts she has signatory authority over
she would need to fuile those as well to be fully compliant
teh amneded returns they are referring to is US taxpayers who previously omitted foreign income
i understand the FBARS, but is it not talking about income tax also
here is the announcement from the IRS: http://www.irs.gov/Individuals/International-Taxpayers/New-Filing-Compliance-Procedures-for-Non-Resident-U.S.-Taxpayers
she has no need to amend since she never filed
I do see that, please note that is a proposed regulation
so just so i know, the link i sent doesnt apply to her then?
It may, when and if it becomes regulation
" This procedure will go into effect on Sept. 1, 2012"
Does that not mean its in effect?
But would help minimize the years you need to file
My apologies it did, for some reason I still think it's August
So 3 years income tax returns and 6 years FBARs it now seems
Please follow my above adice to properly file
i appreciate i have taken your time, but do you mind explaining how the two interact to do 3 years income tax and 6 years FBARs?
Is it hte 1040NR or do i need additional forms?
You will most likely only need Forms 1040NR and 2555 for the income tax returns and Form TD F 90-22.1 for teh FBARs
Ok great, VERY last question!
so the 1040NR and 2555 (and TDF 90-22.1) can cover 3 years or do you submit for each year?
each year is a separate return.
OK Mark, really appreciate your help - so just to confirm i don't need other forms other than the 3 you stated there?
If I was to consult you on this would there be a way to contact you outside of this? My wife has a very simple tax history - one employer and one source of income for the last 3 years, so I can't imagine its that complicated for her?
We cannot engage outside of this forum unfortunately. Those forms should be it unless there was something else missed upon review of the actual documents.
Ok that's fine. thanks very much again for your help..