Firm's Information

My Law,LLC Immigration Law Firm WebSite: www.mylawllc.com E-mail: attorney@mylawllc.com Phone: 1-(630) 903-9625

Friday, April 8, 2011

Worldwide Income

If you are a US citizen, have a green card, or meet the substantial presence test, your US tax return must include your worldwide income. This isn't that bad for most people but could cause problems if you have substantial overseas income. The US has tax treaties with a number of foreign countries (there is currently no tax treaty with Taiwan) and you may be eligible for the foreign earned income exclusion and foreign tax credit.

Substantial Presence 


To meet the substantial presence test, you must have been physically present in the United States on at least 31 days during the current year, and 183 days during the 3 year period that includes the current year and the 2 years immediately before. To satisfy the 183 days requirement, count all of the days you were present in the current year, and one-third of the days you were present in the first year before the current year, and one-sixth of the days you were present in the second year before the current year.

For the substantial presence test, you do not count the days you are an exempt individual. Exempt individuals include students on F, J, M, and Q (generally exempt for the first 5 calendar years) and teachers and trainees on J or Q visas (generally exempt for first 2 calendar years). If you are in these visa categories, you MUST file IRS form 8843. Even if you had no income, you must file form 8843. Form 8843 is filed with your tax return or if you do not file a tax return, you must file it by April 15.

Even if you qualify under substantial presence, there is a limited exception available for students and all aliens.




(630) 903-9625
My Law, LLC
Immigration & Tax Law Firm
www.mylawllc.com

No comments:

Post a Comment

WebSite: http://mylawllc.com/
Phone: (630) 903-9625
E-mail: attorney@mylawllc.com