I-864 Question
Mar 17th 2009, 10:13 am
#16
MODERATOR
Joined: Apr 2003
Location: Phoenix, Arizona
Posts: 58,687
Re: I-864 Question
Right. This will delay things but hopefully not too badly. We were doing so well. I'm glad I found out about it at this point as we are gathering together documents and not at the end of the line. I'm sure most people have no idea that a USC has to file income tax returns with the IRS when working in a country other than America. Imagine if you'd worked 20 years and didn't know about this?
I'm glad you found out, too, and can take care of the issue.
Rene
Mar 17th 2009, 10:28 am
#17
Just Joined
Joined: Mar 2009
Location: South East, UK
Posts: 14
Re: I-864 Question
Oh well, in that case I've just found out about this and it sounds like it could be a problem as we are well on our way in the visa process:
'Filing income tax returns with the IRS is mandatory for USCs and LPRs, regardless of where they live and work. This is because the IRS imposes taxes based on citizenship (see note below), not on residence. As many other territories (including the UK) do not do this, but rather tax on residence only, many USCs do not realise that there is a requirement to file their taxes, and as a result, they often live abroad without filing taxes to the IRS, simply paying income tax to the authority having jurisdiction over the territory where they live and work.
Note: LPRs are also required to file taxes even while living or working abroad, and not doing so can be construed as strong evidence of abandonment of LPR status. They may also be responsible for filing for several years after abandoning LPR status depending on how long they have been in the US.
While there may appear to be no ill effects to simply paying taxes to the UKIR when living and working in the UK (i.e. the IRS don’t contact you), issues arise when the USC living abroad and their spouse decide they want to move to the USA to live. One of the primary requirements for the granting of a visa to the UKC spouse, is that the USC is up to date as regards filing taxes with the IRS.'
'Filing income tax returns with the IRS is mandatory for USCs and LPRs, regardless of where they live and work. This is because the IRS imposes taxes based on citizenship (see note below), not on residence. As many other territories (including the UK) do not do this, but rather tax on residence only, many USCs do not realise that there is a requirement to file their taxes, and as a result, they often live abroad without filing taxes to the IRS, simply paying income tax to the authority having jurisdiction over the territory where they live and work.
Note: LPRs are also required to file taxes even while living or working abroad, and not doing so can be construed as strong evidence of abandonment of LPR status. They may also be responsible for filing for several years after abandoning LPR status depending on how long they have been in the US.
While there may appear to be no ill effects to simply paying taxes to the UKIR when living and working in the UK (i.e. the IRS don’t contact you), issues arise when the USC living abroad and their spouse decide they want to move to the USA to live. One of the primary requirements for the granting of a visa to the UKC spouse, is that the USC is up to date as regards filing taxes with the IRS.'
Mar 17th 2009, 10:43 am
#18
Joined: Apr 2002
Posts: 35,082
Re: I-864 Question
http://britishexpats.com/forum/showp...80&postcount=2
US citizens must file income tax returns with the IRS every year, regardless of where the income is generated. Some or all of your overseas income may be exempt. Please use irs.gov or contact your tax professional for individual information.
The I-864 requires your most recent Federal Income Tax Return (a photocopy of your tax transcript from the IRS is fine). If you had no income or low income and are not required to file, include a letter of explanation in lieu of tax returns.
You can find information on ordering tax transcripts here: http://www.irs.gov/faqs/faq1-6.html .
Most people report that they get the fastest service by calling from the US and ordering the transcripts through the automated phone system at 1.800.829.1040 (option ‘2’ at the first menu). The USC can have a trusted friend/family member make this call if they are not in the US – it is all teleprompt and you do not speak to a person.
USCs living abroad can find answers to many of their frequently asked tax questions here:
IRS FAQ Section 13/Aliens and US Citizens Living Abroad
