An ex-patriot is any United States citizen living abroad. Every Ex-Pat is required to file at least two forms: A United States tax return on world wide income; and an FBar Form (TDF-90-22.1, due June 20, 2011). It is a report of foreign bank and financial accounts held world-wide.
- It is possible for this taxpayer to exclude up to $92,900 of earned income and up to $13,006 for housing in the year 2011.
- Americans may live in a variety of places, some more expensive than others. Those in a hi-cost living area may be able to exclude even more housing expense.
- It is possible for both working husbands and working wives to take advantage of these exclusions.
- Generally, an Ex-Pat must meet a substantial residence test which involves 330 days abroad in any year.
- If the taxpayer is self-employed he/she must file if net earnings from self-employment are $400 or more.
- Tax treaties generally rule the taxability from a certain country.
- If, at the end of the tax year, the taxpayer is married and one is a U.S. Citizen or a resident alien and the other is a nonresident alien, it is possible to treat the nonresident as a U.S. Citizen.
“Pat Smith, a U.S. citizen, is married to Norman, a nonresident alien, pat and Norman make the choice to treat Normas as a resident alien by attaching a statement to their joint return.. Pat and Norman must report their worldwide income for the year they make the choice and for all later years unless the choice is ended ot suspended. Although Pat and Norman must file a joint return for the year they make the choice, they can file either joint or separate returns for later years.” (IRS Publication 54, 2010 edition p.6)