Hi,
My wife and I have arrived US with a F1/F2 visa since 2006. We have filed a joint 1040 for 2011.
I will graduate in May and leave US in June to work in another country this year. My question is that do I need to file a sailing or departure permit to exclude the salaries after I leave the US? And how should I file a 2012 return next year? Which form should I use?
Thanks!

You WILL have to file a 2012 tax return.

The sailing or departure permit is not enforced and normally will NOT keep you form getting on the plane. If you bring a copy of your latest payslip that shows sufficient federal income taxes were withheld from your salary, that should be sufficient should anyone challenge you.

Which form should we use to file a 2012 tax return? Thanks!

You will have a choice:

1) You can file a dual-status return, which requires BOTH Form 1040 and 1040NR. Standard warning: the dual-status return is NOT for amateurs; get professional tax help.

The advantage of this filing is you pay taxes ONLY on your U.S.-sourced income, but you LOSE the standard deduction.

OR

2) You can use the default Residency Termination Date of 31 December 2012 and file a joint return. This requires you declare ALL world-wide income, but you can mitigate any double taxation by also filing Form 1116 to claim the Foreign Tax Credit. You DO get to claim the JOINT standard deduction plus this return CAN be filed electronically (at least at the federal level and possibly at the state level; depends on the state).

Either way, you also need to submit a Residency Termination Statement.

Is our duty for US tax ending in 2012 for both choices?

Yes; 2012 will be the LAST tax return you file, provided you do not return to the U.S.

Quote:

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Originally Posted by AtlantaTaxExpert

Yes; 2012 will be the LAST tax return you file, provided you do not return to the U.S.

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Could you please help me to file the dual status return for year 2012? And how much will the service cost?

Chloe,

I cannot provide a fee quote here, but if you send me an email (the email address can be found in my profile) with your 2012 pay data, I can model the return BOTH ways and send you a concise fee quote.