Abandoned Green card

This reply is - I am sorry to say - not complete or accurate. Form 8854 may not be required at all if the husband files a treaty based return. If he files a treaty based return & is still over 8 years the 8854 is filed with the 8854 for the first year in which a treaty-based position is taken.  The husband has never been a US citizen at all. This might be a simple typo.  Have you handled many treaty-based returns? They are a common approach in this scenario.

I have not mentioned taking the treaty based position on my message that you are referring to. In fact i mentioned it may not be a good idea due to the penalties in previous responses. But thank you for trying to make me look bad. I have a number of years of experience in US UK tax including many accidental Americans expatriating and also taking the treaty based position for clients who meet the substantial presence test using either forms 8840 or 8833.

So if he files off a treaty is there any way he would be able to file the expatriation form for 2020 or is it because he would be filing for I-407 that he would need to wait for 2021 to file 8854?
Also if we dont meet the thresholds to have to pay an exit tax are we still required to file this form? Just so I know I am filing the correct forms. I have a meeting next week with my tax advisor so I just want to have as much information as I can so I can write down all my questions to fully understand what I need to do.
Thanks

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If the treaty based position is taken, your husband would still have to formally renounce citizenship (Greencard) using the I-407 but the form 8854 would not have to be filed if the treaty based position is taken from 2018 as he would not be treated as a long term resident You are a long-term resident for U.S. federal income tax purposes if you were a lawful permanent resident of the United States (green card holder) in at least 8 of the last 15 tax years ending with the year your residency ends. So if he claims the treaty based position then an 8854 would not need to be filed. I don't think it is a good idea to take the treaty based position as mentioned in a earlier response as there are late penalties. Based on the limited information provided, I think it would be best to refile your tax returns MFJ as I don't believe there would be any penalties (again based on limited information and foreign tax credit reducing any US tax). The form 8854 would need to be filed with your 2021 tax return but i don't believe it is particularly difficult and from what you've told me, there would be no exit tax. I have helped many individuals expatriate in the past and it is not difficult to do.

If the treaty based position is taken, your husband would still have to formally renounce citizenship (Greencard) using the I-407 but the form 8854 would not have to be filed if the treaty based position is taken from 2018 as he would not be treated as a long term resident You are a long-term resident for U.S. federal income tax purposes if you were a lawful permanent resident of the United States (green card holder) in at least 8 of the last 15 tax years ending with the year your residency ends. So if he claims the treaty based position then an 8854 would not need to be filed. I don't think it is a good idea to take the treaty based position as mentioned in a earlier response as there are late penalties. Based on the limited information provided, I think it would be best to refile your tax returns MFJ as I don't believe there would be any penalties (again based on limited information and foreign tax credit reducing any US tax). The form 8854 would need to be filed with your 2021 tax return but i don't believe it is particularly difficult and from what you've told me, there would be no exit tax. I have helped many individuals expatriate in the past and it is not difficult to do.

So would I be able to amend my last 2 years of tax returns adding my husbands income would there be a late fee this way do you think? I am just trying to find the most cost effective way as covid has affected our income and we dont want to lose our safety net as its all we have.
So my options seem to be amending my previous returns, filing my husbands seperate but late with potential for late fee or filing a treaty route that may also have fees? How would I know if he has is covered under the 8 tax years out of 15? Would he of had to of been in the US for the 8 years? Or just required to pay taxes with a valid greencard for 8 years? Wouldnt his greencard be considered abandoned?

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