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View Full Version : What do I need to do if I was living outside the USA for 6 years and didn't file taxes


JHince
Nov 22, 2009, 07:26 PM
Greetings,

I have a 2 part question.

First, I am an American citizen and had been living in Mexico from January 2003 until August of 2009. I did not file an income tax for those years to the US gov't. I earned far less than the equivalent of 20,000 usd in Mexican pesos and I paid my taxes to the Mexican gov't for those years while living there. I do have all my paperwork from those years from my Mexican employers so my question is do I file the paperwork for the past or just do this year's (2009). I have been back living in the US since Sept 2009 and recently became fully employed in November. So should I just file this year's income earned within the USA or do I report the income from both countries?

Second, I am married to a Mexican who is legally in the country and is in the process for his Green card which should be done by April of 2010. When filling out my W4 for the last months of 2009 and again in beg 2010 it states in the bottom to check the box as single (in case of marriage to a non-resident alien) which I am doing, but how should I fill out the top of the W4? The number of exemptions?

He is not working and my income is supporting both of us. Should I file the top of the W4 as a single as well? I guess I am confused about (B), because at the bottom I have to check single but under the parts of (B) you are single and have only one job "technically" I am not single, but the second part of that states You are married, have only one job, and your spouse does not work (which is the technically true part), but I am confused because at the bottom it tells me to check the single box.

Also once he has the green card, SSN and is working how do forms work? Which forms should I learn about? And once he has all his paperwork done and is working can we file married jointly?

Sorry for the long question, it has been so long since I have had to do this and now the situation is different for us. Thanks in advance for any response!

MukatA
Nov 23, 2009, 01:30 AM
You are required to file the U.S. tax return if you worldwide income is more than the filing requirements. So it appears that you need to file all unfiled returns.
On the return, you will claim credit for taxes paid in the foreign country by filing Form 1116 or can file form 2555 Foreign Earned Income Exclusion.. Net result: you will not pay any U.S. tax or pay very little U.S. tax.
Another filing requirement is Form TD F 90-22.1. Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)

Also note that IRS interest and penalty depends upon taxes you owe. If you owe no tax, then you do not pay any penalty.

Five Rings
Nov 23, 2009, 02:00 PM
To make things very simple and fast file the last 6 years as married filing separately. I should take you about half an hour per year.
You will be a bona fide resident of Mexico

You will file your 1040 together with a 2555EZ (if you were employed by a company). If you have kids 16 or under find a tax professional and file a Form 1116 and claim the Child Tax Credit.