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Topic: physical presence test / extensions  (Read 1098 times)

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physical presence test / extensions
« on: August 18, 2010, 12:34:30 PM »
I applied for an extension for 2009 back in April which gives me until October but I was in the US for 15 days in December 2009 and for 23 days in April/May when we were stranded due to the volcano.  There's no way I can meet the 330 days requirement this year, as I didn't arrive in the UK until August 2009 and the only way I could apply is by figuring out a way to not include the April/May US trip.  Is it possible to apply for a second or third extension (which form would this be??) and use the physical presence dates of June 2010 to June 2011 for a 2009 filing???  

Or could I extend once more and try to use the bona fide resident test from Jan 1 2010 to Dec 31 2010, even though I would be out of the country for more than 330 days?!?

Alternatively, if I can't take the extension for 2009, am I eligible to use foreign tax credit without meeting the 330 day requirement?  

Has anyone else encountered this problem before?
« Last Edit: August 18, 2010, 01:17:31 PM by lilybelle »


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Re: physical presence test / extensions
« Reply #1 on: August 18, 2010, 08:32:05 PM »
Have you checked if they are allowing any extra days in the US for those who were stranded? 


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Re: physical presence test / extensions
« Reply #2 on: August 18, 2010, 09:11:29 PM »
Have you checked if they are allowing any extra days in the US for those who were stranded? 

i haven't but will give the embassy a call in the morning to ask about this. thanks for the idea--if they did allow extra days, i would have the 330 days needed.


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Re: physical presence test / extensions
« Reply #3 on: September 13, 2010, 04:18:40 PM »
Quote
Alternatively, if I can't take the extension for 2009, am I eligible to use foreign tax credit without meeting the 330 day requirement?

Yes you can. For the foreign tax credit it does not matter where in the world you are. You can spend the entire year in the US and still file the foreign tax credit if you paid foreign income taxes.


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Re: physical presence test / extensions
« Reply #4 on: September 13, 2010, 08:46:49 PM »
Yes you can. For the foreign tax credit it does not matter where in the world you are. You can spend the entire year in the US and still file the foreign tax credit if you paid foreign income taxes.
But in this scenario you wouldn't have foreign source income...


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Re: physical presence test / extensions
« Reply #5 on: September 14, 2010, 07:15:45 AM »
But in this scenario you wouldn't have foreign source income...
Not necessarily true. Just as one example, lots of Americans own mutual funds that invest in foreign companies, meaning they almost certainly have a foreign tax credit they can take.

In any case, merely trying to make the point that the foreign tax credit doesn't care where in the world you are.


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Re: physical presence test / extensions
« Reply #6 on: September 15, 2010, 10:21:01 PM »
"the foreign tax credit doesn't care where in the world you are."

Of course, if you were talking about earned income (which I believe was the subject of this thread), your location would matter.


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