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View Full Version : For US citizens abroad, what is the standard deduction and do you file as a resident?


talhasaleem1990
May 30, 2020, 08:54 PM
US citizens that have been resident outside the country since start of 2019 (been in the US for approx 1 month all of 2019), would they be able to claim standard deduction?

And are there any limits on physical presence in the US that need to be watched to determine if we would be considered residents for taxation purposes?

AtlantaTaxExpert
May 30, 2020, 10:11 PM
U.S. citizens who have resided outside of the United States are STILL required to file an annual U.S. tax return and they can claim the same deduction as any living inside the United States.

Physical presence in the U.S. only becomes an issue for green card holders and those who have established residency through the Substantial Presence Test.

talhasaleem1990
May 31, 2020, 07:28 PM
Oh, interesting. Really helpful.

And just to be clear for the income earned abroad we dont have a W-4 so what documents would we need to submit in such a situation?

AtlantaTaxExpert
May 31, 2020, 09:32 PM
You need to determine what income earned overseas is subject to U.S. taxes, and what is not. Look at the tax treaty if there is one.

Then what you earned as wages is entered on Line #7 of the Form 1040.

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