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Topic: Physical presence test  (Read 1132 times)

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Physical presence test
« on: January 24, 2014, 11:34:22 AM »
I moved to the UK part-way through 2013 and need to request an extension on my tax return in order to qualify for the 330-day physical presence test.

My question is which form I should file to request this - form 2350 or 4868 ? Form 2350 is intended for extensions related to overseas residence, but in the instructions it says "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 the thing is I'm not planning to file Form 2555 - I'm filing Form 1116 instead.

The reason I need to meet the physical presence test is in order to be exempt from filing Form 8938.

So the question is, is it bad to file Form 2350 if I don't end up filing Form 2555? How should I handle this case of needing to meet the physical presence test in order to avoid having to include Form 8938?
« Last Edit: January 24, 2014, 12:07:22 PM by Jugdish »


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Re: Requesting an extension - form 2350 or 4868 ?
« Reply #1 on: January 24, 2014, 11:43:06 AM »
Will you be ready to file by October 15th? If so, you'll find it easier to use Form 4868 - you can file it electronically, you don't need to give a reason and it is automatically approved. The only reason to consider 2350 would be if you need a further extension of time.


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Re: Physical presence test
« Reply #2 on: January 24, 2014, 12:11:51 PM »
Hang on a minute, I just noticed something strange in re-reading the instructions for Form 8938...

The way it's worded, it looks like the physical presence test for Form 8938 is different from the physical presence test for Form 2555.

Form 2555 says: "The 12-month period on which the physical presence test is based must include 365 or 366 days, part of which must be in 2013. The dates may begin or end in a calendar year other than 2013."

Form 8938 says: "A U.S. citizen or resident who is present in a foreign country or countries at least 330 full days during any period of 12 consecutive months that ends in the tax year being reported."

Based on that difference in wording, it looks like the tests for each form have different requirements. Can anyone confirm this?? Will I fail to meet the test for Form 8938 because I moved to the UK in August of 2013?


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Re: Physical presence test
« Reply #3 on: January 24, 2014, 01:57:31 PM »
I wasn't 100% sure on this either, so I just decided to file an 8938. My train of thought was that it's easier to file, even if it's not required. For 2014, as a bonifide UK resident for the calendar year, you'll know your obligations for the 2015 filing season, taking into account the higher threshold limits. With such incredible penalties, it simply wasn't worth it to me not to file...


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