Open-ended overseas trip--how to handle U.S. taxes?

Posted by Jean Barto on September 24, 2009, 11:16 pm

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Hi,

I'm thinking of traveling overseas for a long-term trip next year, and could
well be gone for over a year. My tentative plan is to file my 2009 federal
and state taxes as soon as I get all my 1099s and W2s--in any case, NLT
March 1st, and then leave on my trip.

Assuming I do that, and then end up returning to the U.S.
after April 15, 2011, how would you all recommend I handle my 2010 taxes?
I see a number of possibilities:

1. Make sure I'm somewhere with reliable internet access in February or
March 2011, and then do them via TurboTax for the web.

2. Carry my 2009 tax file with me on my thumb drive, and do the taxes
overseas, as in option #1.

3. Take advantage of the overseas time extension and just get them done
after April 15th, making sure I get them done before the time extension
expires (is it four, or six months?).

4. Don't worry about getting them done while I'm gone, and instead do
them when I return (probably Summer 2011).

Please let me know what other alternatives are possible with this travel
situation. I'm sure that lots of other people have had to deal with similar
issues in the past!

In any case, I'll be selling most of my personal possessions and furniture
before I leave, in order to raise travel money. If I don't sell my house
beforehand, it will have renters in it. Other than that, I don't have any
other "tax issues" like retirement or brokerage accounts to deal with. Not
sure it I would be working overseas or not--I *do* have a 2nd passport from
an EU country, so I suppose I *could* work if I wanted to, or wanted to find
a job legally for awhile. I *am* aware that any overseas income *would* be
taxable by the IRS.

Thanks,

Jean in VA

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Posted by S on September 25, 2009, 3:46 pm

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I think you can do it any way you like, the only issue I can think of
is that if you work abroad and want to take advantage of the foreign
earned income exclusion, you need to file by the due date (including
extensions). If you have not been abroad long enough by the due date
to establish your eligibilty for the exclusion, you can request an
extension until you expect to qualify, alternatively you can file
without claiming the exclusion and then file an amended return later
to claim the exclusion.

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<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

Posted by parrisbraeside@yahoo.ca on September 26, 2009, 8:21 am

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There are a number of overseas tax preparers available to assist you
with filing your local and US tax returns.

One thing you will need to be aware of is that the Foreign Earned
Income Exclusion (which many people suggest as the best way to file)
is not necessarily the best. Also, given your additional complications
being overseas, it would be best to get started on your returns at the
earliest opportunity, that is, when you get your slips.

--
<< ------------------------------------------------------- >>
<< 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 (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>