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Subject Author Date
Non Resident filing question por 02-05-2007
Posted by por on February 7, 2007, 8:07 pm
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> o...@ireland.com wrote:

>> I will have to file a tax return this year as I have taken a
>> distribution from a traditional IRA.
>>
>> I will be filing a 1040 NR as I am no longer living in the
>> U.S. Do I have to declare all my income in the country I am
>> living in for the tax return or is the only item I have to
>> declare the amount from the IRS distribution ?.

> You don't say whether you are a US citizen or greencard
> holder, just that you live in another country. The answer
> depends on this information, however. If you are, you do
> not file 1040NR but a regular 1040 and report ALL your
> income, not just the IRA distribution.
>
> Whether you have to pay tax in the country where you live
> depends on the tax law of that country. Some countries tax
> this type of income, others do not.

I am a Green card holder but do not meet the substantial
presence test as I have not lived in the US for a number of
years and have not officially abandoned my residency (I will
do so the next time I enter the US).

I opened the IRA while resident in the US as a green card
holder. My income is my country of residence is from wages
and it is taxed. I will not be taxed on my IRA distribution
in my country of residence.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
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Posted by Shyster1040 on February 10, 2007, 6:43 am
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 As a greencard holder who has not renounced residency, you
are still subject to US income tax on your worldwide income.
Because you hold a greencard, the substantial presence test
is irrelevant.

Thus, you are required to file a Form 1040 and you will have
to report your worldwide income. If you meet the definition
of "qualified individual" under Sec. 911(d)(1)(B), "a
citizen or resident of the United States and who, during any
period of 12 consecutive months, is present in a foreign
country or countries during at least 330 full days in such
period," then you may be able to exclude some of your
foreign wages from gross income for US income tax purposes.

To the extent that you cannot exclude some or all of your
foreign wages from gross income under Sec. 911, you would be
entitled to claim either a deduction or a foreign tax credit
for US income tax purposes on account of the foreign taxes
you paid on your foreign wages. However, keep in mind that,
to the extent that you can exclude some of those wages from
gross income under Sec. 911, any foreign taxes you paid with
respect to the excluded amounts cannot be either deducted or
credited for US income tax purposes.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by parrisbraeside@yahoo.ca on February 9, 2007, 12:11 am
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p...@ireland.com wrote:
>> o...@ireland.com wrote:

>>> I will have to file a tax return this year as I have taken a
>>> distribution from a traditional IRA.
>>>
>>> I will be filing a 1040 NR as I am no longer living in the
>>> U.S. Do I have to declare all my income in the country I am
>>> living in for the tax return or is the only item I have to
>>> declare the amount from the IRS distribution ?.

>> You don't say whether you are a US citizen or greencard
>> holder, just that you live in another country. The answer
>> depends on this information, however. If you are, you do
>> not file 1040NR but a regular 1040 and report ALL your
>> income, not just the IRA distribution.
>>
>> Whether you have to pay tax in the country where you live
>> depends on the tax law of that country. Some countries tax
>> this type of income, others do not.

> I am a Green card holder but do not meet the substantial
> presence test as I have not lived in the US for a number of
> years and have not officially abandoned my residency (I will
> do so the next time I enter the US).
>
> I opened the IRA while resident in the US as a green card
> holder. My income is my country of residence is from wages
> and it is taxed. I will not be taxed on my IRA distribution
> in my country of residence.

As a green card holder, you must report your world-wide
income and file a 1040, 1040A or 1040EZ. You report your
wages in the country of residence to the US Govenment and
are taxed on the same.

You are permitted a foreign tax credit and/or foreign income
exclusion. The best combination will depend on your
situation.

You may not use the 1040NR.

Sorry.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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