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Form 8854 Questions

Form 8854 Questions

Old Feb 20th 2021, 10:46 pm
  #1  
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Default Form 8854 Questions

I have read a few good posts here, but had a few questions to confirm some things:

1. Question 7 - Pensions from services performed outside the United States - retirements accounts setup with balances, before moving to USA are exempt and should not appear in the balance sheet?

2. 401(k) accounts should be declared in the balance sheet on Question 6 - Pensions from services performed in the United States correct ?

3. Enter your U.S. income tax liability - Is it on the 1040, which line exactly?

4. Assuming expatriation was in this year 2021, and it was non-covered (assets below 2 million etc) - then in 2022 I would complete and mail the 2021 tax return 1040, attach 8854 with balance sheet, send a copy of the 8854 to the Department of the Treasury in Philadelphia, mail the state return in, and then that is it? There would be no Annual Expatriation Statement to send in following years correct?

Last edited by golfer0; Feb 20th 2021 at 10:49 pm.
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Old Feb 20th 2021, 11:17 pm
  #2  
tht
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Default Re: Form 8854 Questions

Originally Posted by golfer0 View Post
I have read a few good posts here, but had a few questions to confirm some things:

1. Question 7 - Pensions from services performed outside the United States - retirements accounts setup with balances, before moving to USA are exempt and should not appear in the balance sheet?

2. 401(k) accounts should be declared in the balance sheet on Question 6 - Pensions from services performed in the United States correct ?

3. Enter your U.S. income tax liability - Is it on the 1040, which line exactly?

4. Assuming expatriation was in this year 2021, and it was non-covered (assets below 2 million etc) - then in 2022 I would complete and mail the 2021 tax return 1040, attach 8854 with balance sheet, send a copy of the 8854 to the Department of the Treasury in Philadelphia, mail the state return in, and then that is it? There would be no Annual Expatriation Statement to send in following years correct?
Given you mention “before moving to the US” it’s likely you are not a USC who is subject to taxation anyway. Your future filling obligations will likely depend if you were here on a visa (and what type) or if you were here as a PR (with a “green card”) how long you were here. You post does not have enough details for anyone to help you. The fact you mention $2m implies you were a LTR, I believe there 3 separate tests, the $2m is one, but there is also the average tax liability test and also the 5 year tax compliance test, and I think any one of these can trigger the review for the expatriation tax.

Last edited by tht; Feb 20th 2021 at 11:29 pm.
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Old Feb 21st 2021, 1:03 am
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Default Re: Form 8854 Questions

To clarify, I am a green card holder who is long term, more than 8 years. I have a retirement account since before coming to US. That account should not be reported?

Last edited by golfer0; Feb 21st 2021 at 1:06 am.
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Old Feb 21st 2021, 2:05 pm
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Default Re: Form 8854 Questions

Originally Posted by golfer0 View Post
To clarify, I am a green card holder who is long term, more than 8 years. I have a retirement account since before coming to US. That account should not be reported?
So you have lived in the US as a LPR for more than 8 years and have some type of retirement account overseas and are asking if you have to report it ?

Have you not reported it in the last 8 years on your tax returns or FBAR?

There are other posters here who have much more experience, but from other threads it seems like a lot also depends on what type of “retirement account” it is... you will probably need to give more details for anyone to be able to help.

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Old Mar 1st 2021, 5:31 am
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Default Re: Form 8854 Questions

Hello, are there any experts who can confirm? In particular the first point is a true statement? Any reference? Thanks.
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Old Mar 1st 2021, 5:33 am
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Default Re: Form 8854 Questions

And the income tax liability is the extra (Check) amount to be forwarded to the IRS?
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