Publication 54 - Tax Guide For U.s. Citizens And Resident Aliens Abroad - 2006 Page 7
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44must complete Form SS-5. You must also pro-
the date you paid your income tax for that year,
whichever is later.
vide original or certified copies of documents to
Estimated Tax
verify your spouse’s age, identity, and citizen-
Suspending the Choice
ship.
The requirements for determining who must pay
If your spouse is not eligible to get an SSN,
estimated tax are the same for a U.S. citizen or
The choice to be treated as a resident alien does
he or she can file Form W-7 with the IRS to apply
resident abroad as for a taxpayer in the United
not apply to any later tax year if neither of you is
for an ITIN.
States. For current instructions on making esti-
a U.S. citizen or resident alien at any time during
mated tax payments, see Form 1040-ES.
the later tax year.
How To Make the Choice
If you had a tax liability for 2006, you may
Example. Dick Brown was a resident alien
have to pay estimated tax for 2007. Generally,
Attach a statement, signed by both spouses, to
on December 31, 2003, and married to Judy, a
you must make estimated tax payments for
your joint return for the first tax year for which the
nonresident alien. They chose to treat Judy as a
2007 if you expect to owe at least $1,000 in tax
choice applies. It should contain the following:
resident alien and filed a joint 2003 income tax
for 2007 after subtracting your withholding and
•
return. On January 10, 2005, Dick became a
credits and you expect your withholding and
A declaration that one spouse was a non-
nonresident alien. Judy had remained a nonresi-
credits to be less than the smaller of:
resident alien and the other spouse a U.S.
dent alien. Because both were resident aliens
citizen or resident alien on the last day of
1. 90% of the tax to be shown on your 2007
during part of 2005, Dick and Judy can file joint
your tax year and that you choose to be
tax return, or
or separate returns for that year. Neither Dick
treated as U.S. residents for the entire tax
nor Judy was a resident alien at any time during
2. 100% of the tax shown on your 2006 tax
year, and
2006 and their choice is suspended for that year.
return. (The return must cover all 12
•
For 2006, both are treated as nonresident
The name, address, and social security
months.)
aliens. If Dick becomes a resident alien again in
number (or individual taxpayer identifica-
If less than two-thirds of your gross income for
2007, their choice is no longer suspended and
tion number) of each spouse. (If one
2006 or 2007 is from farming or fishing and your
both are treated as resident aliens.
spouse died, include the name and ad-
adjusted gross income for 2006 is more than
dress of the person making the choice for
$150,000 ($75,000 if you are married and file
Ending the Choice
the deceased spouse.)
separately), substitute 110% for 100% in (2)
above. See Publication 505 for more informa-
Once made, the choice to be treated as a resi-
You generally make this choice when you file
tion.
dent applies to all later years unless suspended
your joint return. However, you can also make
(as explained earlier) or ended in one of the
The first installment of estimated tax is due
the choice by filing a joint amended return on
ways shown in Table 1-1 below.
on April 16, 2007.
Form 1040X. Attach Form 1040, 1040A, or
If the choice is ended for any of the reasons
When figuring your estimated gross income,
1040EZ and print “Amended” across the top of
listed in Table 1-1, neither spouse can make a
subtract amounts you expect to exclude under
the amended return. If you make the choice with
choice in any later tax year.
the foreign earned income exclusion and the
an amended return, you and your spouse must
foreign housing exclusion. In addition, you can
also amend any returns that you may have filed
reduce your income by your estimated foreign
after the year for which you made the choice.
housing deduction. However, if the actual
You generally must file the amended joint
amount of the exclusion or deduction is less than
return within 3 years from the date you filed your
you estimate, you may have to pay a penalty for
original U.S. income tax return or 2 years from
underpayment of estimated tax.
Table 1 – 1. Ending the Choice
• Either spouse can revoke the choice for any tax year.
Revocation
• The revocation must be made by the due date for filing the tax return for that tax year.
• The spouse who revokes must attach a signed statement declaring that the choice is being revoked. The statement
revoking the choice must include the following:
• The name, address, and social security number (or taxpayer identification number) of each spouse.
• The name and address of any person who is revoking the choice for a deceased spouse.
• A list of any states, foreign countries, and possessions that have community property laws in which either spouse
is domiciled or where real property is located from which either spouse receives income.
• If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the
statement to the Internal Revenue Service Center where the last joint return was filed.
• The death of either spouse ends the choice, beginning with the first tax year following the year the spouse died.
Death
• If the surviving spouse is a U.S. citizen or resident alien and is entitled to the joint tax rates as a surviving spouse, the
choice will not end until the close of the last year for which these joint rates may be used.
• If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the
spouses died.
• A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation occurs.
Divorce or
Legal separation
• The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate
Inadequate records
books, records, and other information necessary to determine the correct income tax liability, or to provide adequate
access to those records.
Chapter 1 Filing Information
Page 7
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