BulldogTom Posted June 6, 2008 Report Share Posted June 6, 2008 I have been looking at the rules and just want to check that I am reading this correctly. Couple of questions that would help me out. If the spouse lives in US, do they still get the automatic 2 month extension? If they do not file a timely extension by April 15th (spouse in US), can they still make the election to exclude on a late filed return? If the 330 day rule will be met by the extended due date of the return, there is no problem with taking the exclusion, even if the 330 days were not all in 2007? Here is the situation, H is overseas from May to Dec. Not sure if he is still there, but I suspect so, because I am meeting with the W only. She is a referral and we have just breifly touched bases. She thinks all the taxes should not appear on his W2, but they do. Has not filed 2007 return yet. I think that if he meets the 330 day rule, we can exclude a portion of his 2007 income using the formula. I am just not sure if they get the automatic extension of time, and if a timely extension needed to be filed to make the election. If they don't qualify for exclusion, then the only thing left is foreign tax credit? Thanks in advance. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted June 6, 2008 Report Share Posted June 6, 2008 When the taxpayer files his return for the year containing the first part of the 12-month period during which he satisfies the physical presence test, he may not yet be eligible for the exclusion. In general, he must file his return as though he does not qualify for the exclusion, and then file for a refund when he does qualify. However, a special extension for filing (but not for paying tax) is available for taxpayers who expect to qualify for the exclusion. They can request a special extension to file the return until after the completion of the qualifying period by filing Form 2350, Application for Extension of Time to File U.S. Income Tax Return. The extension does not extend the time for paying any tax. See Reg. Section 1.911-7©. File Form 2350 on or before the due date of your Form 1040. For a 2007 calendar year return, this is April 15, 2008. However, if you have 2 extra months to file your return because you were “out of the country” (defined later), file Form 2350 on or before June 16, 2008. So it is not too late to file the 2350 for him. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted June 6, 2008 Author Report Share Posted June 6, 2008 And none of this is affected by the spouse never leaving the country? Thanks KC. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted June 6, 2008 Report Share Posted June 6, 2008 No, the fact that she is here does not take away his need for extra time, which is why the law gives a longer time for a taxpayer who is out of the country. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted June 6, 2008 Author Report Share Posted June 6, 2008 Thanks KC. As always, you are my favorite. How is life with the grandbabies in town? Must be nice for you. Tom Lodi, CA Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted June 9, 2008 Report Share Posted June 9, 2008 Yes, it's wonderful. I'd attach a picture, if I knew how to do it. Quote Link to comment Share on other sites More sharing options...
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