If you are a usa citizen living overseas what is the point in filing a us tax return you do not exce

You have moved from the USA in 2007 so you worked 2 months in the USA and the rest of 2007 overseas . Why do you have to put your income for overseas if it is not above 80,000 . Also if you are filing can you claim all the same things child tax credit etc. Can I claim head of household my wife did not work for the 2007 year and she is or was a permanent resident of the USA . We just found out you can only keep your permanent residence card if you live in the USA . So even though she has not relinquished her green card yet is she a resident for tax purposes?Also how many years can you go back and ammend your taxes . ie Can you amend your 2005 return ? Would appreciate anyones help?

If you are a usa citizen living overseas what is the point in filing a us tax return you do not exceed 80,000?

You must have lived outside the U.S. for at least 330 days to exclude your foreign earnings. You may satisfy this requirement any 12 month-period. So, from March 1, 2007 - March 1, 2008 if you meet that requirement you may go on and file your tax return using the physical presence test. However, the exclusion, which is now $85,700 is prorated based upon the number of days out-of-country in 07. It applies to each person. So, a couple could each earn $85,700 and not pay any tax IF that were their only income.

It%26#039;s a bit complicated to explain here why you have to file if you get to take it off. Some other income, such as Social Security is calculated differently if one has Foreign-earned income. But there are many other reasons, too.

Some deductions and/or credits are NOT allowed if PAID with foreign earnings. If you have other income such as Interest/Dividends, Capital Gains, Rental Income, and taxable portion of Social Security, you need to prorate all deductions based upon the percentage of U.S. Income/ Total income BEFORE EXCLUSION.

Returns 2004, 2005 and 2006 are all open to be amended. 2004 is barred from amendment after April 15, 2008.

Hope this helps, but you would do well to see a professional.

Good Luck!

If you are a usa citizen living overseas what is the point in filing a us tax return you do not exceed 80,000?

Even if the form 2555 applies, it is an election. If you do not file, you cannot make the election. The IRS *is* very forgiving if you file late and can show that with the form you do not owe, they will still let you take the election even if your return is not timely filed.

You can still file jointly if you wish. Note, HOH is only possible if she is considered a non-resident for tax purposes and losing her green card *isn%26#039;t* enough to cause this. To lose tax status, she must also contact DHS.

For amending a return from single to joint, you must amend 2005 no later than 4/15/2009.