2010 Form 2350 wrote:Use Form 2350 to ask for an extension of time to file your tax return only if you expect to file Form 2555 or 2555-EZ and you need the time to meet either the bona fide residence test or the physical presence test to qualify for the foreign earned income exclusion and/or the foreign housing exclusion or deduction.
All other taxpayers should file Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, to request an extension of time to file their return. Note. Do not file Form 2350 more than once for each move overseas. If, after meeting the qualifications for the "bona fide residency test" or the "physical presence test," you remain abroad continuously for the following tax year(s) and require an extension, file Form 4868.
Your Question Was:
I am an overseas taxpayer who expects to qualify for the physical presence test on the 2555ez. However, I have not resided overseas for the necessary 330 days in a 12 month period beginning or ending in 2009. I plan on applying for a filing extension beyond the 2-month automatic extension for residents overseas at the time of the filing deadline. My question is which form I should use to file for this extension. I read the instructions in Publication 54, and it appears to me that both the 4868 and 2350 can be used to apply for an extension. Is this correct? I am planning on using the 4868 to apply for a 6-month extension, which would then give me the necessary 330 days in a 12-month period. Thank you for your help.
The Answer To Your Question Is:
Thank you for your inquiry. We apologize for the delay in our response. Since you stated that the 6 month extension was sufficient, you would use the Form 4868, Application for Automatic Extension of Time To File U.S. Individual Income Tax Return, to request the extension. Generally Form 2350, Application for Extension of Time To File U.S. Income Tax Return, is used to request extensions beyond 6 months. Please refer to the following information.
If you are not able to file your return by the due date, you generally can get an automatic 6-month extension of time to file (but not of time to pay). To get this automatic extension, you must file a Form 4868. You generally cannot get an extension of time to file of more than 6 months. However, if you are outside the United States and meet certain tests, you may be able to get a longer extension.
You can get an extension of time to file your tax return if you need the time to meet either the bona fide residence test or the physical presence test to qualify for either the foreign earned income exclusion or the foreign housing exclusion or deduction. The tests, the exclusions, and the deduction are explained in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, and the instructions for Form 2555, Foreign Earned Income.
You should request an extension if all three of the following apply, you are a U.S. citizen or resident alien, you expect to meet either the bona fide residence test or the physical presence test, but not until after your tax return is due, and your tax home is in a foreign country (or countries) throughout your period of bona fide residence or physical presence, whichever applies.
Generally, if you are granted an extension, it will be to 30 days beyond the date on which you can reasonably expect to qualify under either the bona fide residence test or the physical presence test. However, if you have moving expenses that are for services performed in 2 years, you may be granted an extension to 90 days beyond the close of the year following the year of first arrival in the foreign country.
To obtain an extension, you should file Form 2350 (PDF) with the Internal Revenue Service office specified in the the instructions for Form 2350.
You must file Form 2350 by the due date for filing your return. Generally, if both your tax home and your abode are outside the United States and Puerto Rico on the regular due date of your return and you file on a calendar year basis, the due date for filing your return is June 15. Thank you for using this service.
I'm seeking clarification for something that may mess with more JETs this year than usual thanks to the Tohoku-Kanto Disaster. It's my understanding that US JETs who are in the US for 26 days or more in one 12 month period cannot use the foreign income exclusion form 2555-EZ. Are they still able to file using the standard 2555 form? Or must they then pay taxes on their Japanese income? This has the potential to affect any JETs who returned to their home countries in the wake of the disaster.
kumamotoPA_scott wrote:It's not a problem to have two statements of earnings. Just make sure to add the remuneration from the two statements together to figure out your wages (1040, Line 7) and total foreign earned income (2555-EZ, Line 17), and include copies of both statements and simple translations of both (see explanation in GIH or tax guide above) when you send the 2555-EZ and 1040.
You can report and receive credit for foreign taxes you have paid by filling in the necessary information on 1040 Line 47 and filling out Form 1116; however, the language in the 1040 Instructions makes it sound like this is optional and receiving this credit may not actually increase your refund if you were in Japan all of 2010 and didn't have any US income. BUT I'm not an accountant or anything, so don't take my word for it. I recommend you read over the 1040 Line 47 and 1116 instructions for this.
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