No Income filing requirements

August 30th, 2011 |

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I am a US citizen that has lived in a foreign country for 25 years. For the past 7 years I have not had an income. My spouse is the income producer and he is not a US citizen. I have not filed taxes since I have lived here. When I was working here, I never made more than the foreign exclusion limit. As I currently (and for the past 7 years) do not have an income, am I still required to file a tax return every year?

Hello,

You are only required to file a tax return if your gross income exceeds certain levels. If you have had no income, then no tax return is needed - See table 1 here:
http://www.irs.gov/publications/p501/ar01.html#en_US_2010_publink1000220675

When you do indeed have income, even if below the foreign earned income exclusion amounts you must still file a tax return.

Lastly, I would caution you to keep in mind FBAR filing requirements.

Filing Requirements for Dual Citizens

I am American with dual citizenship in the country that I have been living in for the past 6 years. I am a permanent resident of this country and have my own business in this country. I pay into the tax system. Do I still need to file for taxes in the United States? I haven't up until this point and am concerned that I have to.

Hello,

Indeed, as an American citizen you are required to file your tax returns each year in which your income exceeds certain tresholds. They change each year, and as general guidance you must file a tax return for each year where your income exceeded $8,000 if employed, or $800 if self employed.

However, you may take advantage of the foreign earned income exclusion which would allow you to earn the first $91,500 federal tax free. This number also changes yearly ( Historical foreign earned income exclusion amounts ). This applies only to earned income (One generated by your personal services such as wages, participation in a partnership, or self employment income).

Self employment net income would still be subject to self employment taxes of 15.3%, unless you can claim a tax treaty benefit. (Self Employment and the foreign earned income exclusion).

In short, you should file your tax returns as non filing is more of a problem than you would like to deal with (Non filing is a criminal offense and you risk losing the right to the foreign earned income exclusion). We can help you with your tax returns - find out instantly the fee for preparing your returns: http://taxplannercpa.com/incometax-online-quickquote.php
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Posted in Foreign Earned Income Exclusion

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No Income filing requirements

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