TonyHouston
8/29/2016 09:03 EST
Hello, can someone fill me in on the rules surrounding this rule? there is an IRS publication here but its not an easy read.
https://www.irs.gov/pub/irs-pdf/p54.pdf
You just need to stay 330 days out of the USA but you can enter numerous times. Is there a start and end date to this or something else I should know? I just arrived about a month ago and I can say that for 2016 tax year i have been in the usa for more than 30 days so I assume I can go back to the USA and stay a short time because I can forget about the 330 day rule for 2016 taxes. Hope this is clear. Would like to hear from other US expats who know the story on this. thank you
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bobj69
From: Turkey
8/29/2016 10:47 EST
The 330 days apply to the first year you are overseas. If you arrived about a month ago that means that when it's tax time you can extend the time you have to submit your tax return. Tax time is normally April 15th, but being overseas you get a 2 month extension and then you can apply for another extension to cover the 12 months. Now the good news. Once you complete a year from January 1st to December 31st out of the US you are classified as a resident of the country you are in. I was in Saudi for 16 years and once I completed that one year Jan-Dec., you can come back to the US as much as you want without being afraid of having to pay tax on all you make. So if you work all of 2017 out of the US in Saudi you are then a confide resident of Saudi Arabia. When you come back into the US and the airline gives you an entry form and where it ask country of residence, write Saudi Arabia.
On the tax for this year and tax extensions talk to a good tax accountant who has dealt overseas taxes. After I got through the first year or so, I used Turbo Tax and did my own taxes. Turbo Tax has all of the tax forms you need for working overseas and does all of the calculations for you.
Good Luck.
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TonyHouston
9/14/2016 11:12 EST
HI Bob, sorry for my tardy reply but the system I dont think notified me. Anyways, would like to ask a follow up and not certian if you are monitoring still.
I was thinking of going back to the USA for Christmas but since I just arrived the end of July 2016, maybe I should not do that because as you mention I can file and extention and which then if I stayed out of the US then I could, with an extention, meet the 330 day rule for my first tax year.
Does that sound about right? thank you very much.
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cpiraino
9/14/2016 12:03 EST
As long as you don't stay long in the USA over Christmas you should be OK. It's actually a 365 day rule but you can go back for less than 30 days in the first year.
Good luck
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TonyHouston
9/15/2016 13:45 EST
Hi cpiraino, appreciate your insight.
==>Into the next year? Or are you saying dont stay even 1 day past xmas
==>I think you mentioned that after the first year you can go back as many times as you want but this is only if you check the box as resident for Saudi Arabia (not USA).
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cpiraino
9/15/2016 14:03 EST
No, once you have stayed the first year it does not matter. The key is the first year. You want to establish residency by being away the full year. During that year you can return as long as cumulatively you are not in the US 30 days or longer
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TonyHouston
9/16/2016 11:31 EST
Thank you. I am grateful for your response. I think I am going to make plans to head back to the USA for a few days.
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