Irs Publication 54 - Tax Guide For U.s. Citizens And Resident Aliens Abroad

Suspending the Choice

must also provide original or certified copies of

States. For current instructions on making esti-

documents to verify that spouse’s age, identity,

mated tax payments, see Form 1040-ES.

and citizenship.

If you had a tax liability for 2008, you may

The choice to be treated as a resident alien does

have to pay estimated tax for 2009. Generally,

not apply to any later tax year if neither of you is

If the nonresident alien spouse is not eligible

you must make estimated tax payments for

a U.S. citizen or resident alien at any time during

to get an SSN, he or she can file Form W-7 with

2009 if you expect to owe at least $1,000 in tax

the later tax year.

the IRS to apply for an ITIN.

for 2009 after subtracting your withholding and

Example. Dick Brown was a resident alien

credits and you expect your withholding and

How To Make the Choice

on December 31, 2005, and married to Judy, a

credits to be less than the smaller of:

nonresident alien. They chose to treat Judy as a

Attach a statement, signed by both spouses, to

1. 90% of the tax to be shown on your 2009

resident alien and filed a joint 2005 income tax

your joint return for the first tax year for which the

tax return, or

return. On January 10, 2007, Dick became a

choice applies. It should contain the following:

nonresident alien. Judy had remained a nonresi-

2. 100% of the tax shown on your 2008 tax

•

A declaration that one spouse was a non-

dent alien. Because Dick was a resident alien

return. (The return must cover all 12

resident alien and the other spouse a U.S.

during part of 2007, Dick and Judy can file joint

months.)

citizen or resident alien on the last day of

or separate returns for that year. Neither Dick

If less than two-thirds of your gross income for

your tax year and that you choose to be

nor Judy was a resident alien at any time during

2008 or 2009 is from farming or fishing and your

treated as U.S. residents for the entire tax

2008 and their choice is suspended for that year.

adjusted gross income for 2008 is more than

year, and

For 2008, both are treated as nonresident

$150,000 ($75,000 if you are married and file

aliens. If Dick becomes a resident alien again in

•

The name, address, and social security

separately), substitute 110% for 100% in (2)

2009, their choice is no longer suspended and

number (or individual taxpayer identifica-

above. See Publication 505 for more informa-

both are treated as resident aliens.

tion number) of each spouse. (If one

tion.

spouse died, include the name and ad-

The first installment of estimated tax is due

Ending the Choice

dress of the person making the choice for

on April 15, 2009.

the deceased spouse.)

Once made, the choice to be treated as a resi-

Foreign earned income exclusion. When

dent applies to all later years unless suspended

You generally make this choice when you file

figuring your estimated gross income, subtract

(as explained earlier) or ended in one of the

your joint return. However, you can also make

amounts you expect to exclude under the for-

ways shown in Table 1-1 below.

the choice by filing a joint amended return on

eign earned income exclusion and the foreign

If the choice is ended for any of the reasons

Form 1040X. Attach Form 1040, 1040A, or

housing exclusion. In addition, you can reduce

listed in Table 1-1, neither spouse can make a

1040EZ and print “Amended” across the top of

your income by your estimated foreign housing

choice in any later tax year.

the amended return. If you make the choice with

deduction. However, you must estimate tax on

an amended return, you and your spouse must

your nonexcluded income using the tax rates

also amend any returns that you may have filed

that will apply had you not excluded the income.

after the year for which you made the choice.

If the actual amount of the exclusion or deduc-

Estimated Tax

You generally must file the amended joint

tion is less than you estimate, you may have to

return within 3 years from the date you filed your

pay a penalty for underpayment of estimated

original U.S. income tax return or 2 years from

The requirements for determining who must pay

tax.

the date you paid your income tax for that year,

estimated tax are the same for a U.S. citizen or

For more information about figuring your es-

whichever is later.

resident abroad as for a taxpayer in the United

timated tax, see Publication 505.

Table 1 –1. Ending the Choice To Treat Nonresident Alien Spouse as a Resident

Revocation

Either spouse can revoke the choice for any tax year.

• The revocation must be made by the due date for filing the tax return for that tax year.

• The spouse who revokes the choice 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.

Death

The death of either spouse ends the choice, beginning with the first tax year following the year in which the

spouse died.

• 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.

Divorce or

A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation

Legal separation

occurs.

Inadequate records

The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep

adequate 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

Irs Publication 54 - Tax Guide For U.s. Citizens And Resident Aliens Abroad - 2008 Page 7

Related Articles

Related forms

Related Categories