carmen blue

That's what I thought but when I called the IRS, they said they have a formula that they would go through with me. It took a long time (lots of questions to answer) and as well as telling them how many days he was in the USA in 2008, 2009 and 2010. They count the days he was in the USA at 100% for 2010, 33% for 2009 and 1/6 of 2008. They add those up, etc etc. If it's below a certain number, even if he had his visa, he does not need to file taxes for 2010. If he received his green card in 2010 it would be a different story

carmen blue

I believe this is the formula (from pub 519):


Substantial Presence Test
You will be considered a U.S. resident for tax purposes if you meet the substantial presence test for calendar year 2011. To meet this test, you must be physically present in the United States on at least:
1. 31 days during 2011, and
2. 183 days during the 3-year period that in- cludes 2011, 2010, and 2009, counting:
a. All the days you were present in 2011, and
b. 1/3 of the days you were present in 2010, and
c. 1/6 of the days you were present in 2009.

ian-mstm

What day did he enter the US with his immigrant visa? If it was in 2010, then that IS the day he got his GC. That stamp in his passport - it's an I-551, the same form # as the actual card.

Most people assume that when the GC arrives in the mail, that's the day you got it... but that's not true. It's the stamp in the passport on the day that he arrives that determines his status. The card is only proof of the status... it isn't the status itself.

He may still be exempt for 2010, but once he's a US permanent resident - I'm not sure you can use the "substantial presence" test.

Ian

carmen blue

Thanks - so frustrating as I spent a long time on the phone with the woman from the IRS and described the immigrant visa stamp in detail (read everything on it to her!). What other exemption could there be? It's not a big deal to file his 2010 taxes (and he won't owe anything) but I hate to pay an accountant to do it. I tried to do it myself but couldn't figure out what kind of deductions he could get (ie we have two children - does he get a percentage of those exemptions for the number of days he was in the US?).

ian-mstm

My understanding is that he can file as though he was resident for the entire year... so any deductions can be applied accordingly.

Ian

penguinsix

I think I already know the answer but wanted to run it past you guys to hear your thoughts.

If I have an account in the UK that has say $20,000, I know I've got to file an FBAR declaring that I have that...etc and so forth.

Now, if I have an account in the UK with $20,000 and then say an account in Ireland with $100, do I then have to file an FBAR for the a) the UK account AND b) the Ireland account, or just the UK account?

It seems to me that all accounts need to be filed, but that's a bit of a much if I have a few tiny accounts left over here and there with a few £s in them.

Jerseygirl

As I understand it once you reach the $10K...all other accounts must be declared. This includes joint accounts with non USCs/GC holders. For the last few years my daughter (who lives in Canada) has had to declare all her accounts in Canada...which includes all joint accounts with her then Canadian fiance...now husband.

Edit: I have closed several of my smaller UK building society accounts for this very reason.

Bink

Yes, this is right. It doesn't matter how it's split but as soon as your total account value outside of the US exceeds $10k, you have to declare ALL accounts that you have signatory authority on. I've rearranged my funds to keep my UK assets below $10k and all in one place to simplify things for myself.

larrabee

I just discovered that you can fill in information on the Fbar form and print it out.
I had been printing it out and filling it in by hand before.
The thing is, the info I put in is printing out blue, not black, does anyone think this will be a problem?

penguinsix

No. Ink color is not going to be a problem.

I think you can also file online too

ian-mstm

It's printing in blue, because that's the embedded font color in the form. It has nothing to do with anything you or your printer is doing.

Ian

nikknakk

Do pensions need to be disclosed on the FBAR as well ?

nun

It depends on the type of pension. If its a final salary pension wher you have no control over how the money is invested, then that's probably not FBAR reportable, but SIPPs would be reportable because the money is held in trust and you can direct the investements.

larrabee

Thanks for the previous answers.
I have a cash ISA with the Post Office, I notice that the money is deposited in the Bank of Ireland UK. Which do you think I should mention as the "name of the financial institution in which account is held"?
(I know I have to declare income form this on my US tax return)

nikknakk

my pension is a 'personal pension' the pension company said its not sipps but I can change the 'risk' level where it is invested, do you think that qualifies for FBAR reporting ?