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2007 Tax

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2007 Tax

2007 tax 20. 2007 tax   Standard Deduction Table of Contents What's New Introduction Standard Deduction Amount Standard Deduction for Dependents Who Should ItemizeWhen to itemize. 2007 tax Married persons who filed separate returns. 2007 tax What's New Standard deduction increased. 2007 tax  The standard deduction for some taxpayers who do not itemize their deductions on Schedule A (Form 1040) is higher for 2013 than it was for 2012. 2007 tax The amount depends on your filing status. 2007 tax You can use the 2013 Standard Deduction Tables in this chapter to figure your standard deduction. 2007 tax Introduction This chapter discusses the following topics. 2007 tax How to figure the amount of your standard deduction. 2007 tax The standard deduction for dependents. 2007 tax Who should itemize deductions. 2007 tax Most taxpayers have a choice of either taking a standard deduction or itemizing their deductions. 2007 tax If you have a choice, you can use the method that gives you the lower tax. 2007 tax The standard deduction is a dollar amount that reduces your taxable income. 2007 tax It is a benefit that eliminates the need for many taxpayers to itemize actual deductions, such as medical expenses, charitable contributions, and taxes, on Schedule A (Form 1040). 2007 tax The standard deduction is higher for taxpayers who: Are 65 or older, or Are blind. 2007 tax You benefit from the standard deduction if your standard deduction is more than the total of your allowable itemized deductions. 2007 tax Persons not eligible for the standard deduction. 2007 tax   Your standard deduction is zero and you should itemize any deductions you have if: Your filing status is married filing separately, and your spouse itemizes deductions on his or her return, You are filing a tax return for a short tax year because of a change in your annual accounting period, or You are a nonresident or dual-status alien during the year. 2007 tax You are considered a dual-status alien if you were both a nonresident and resident alien during the year. 2007 tax Note. 2007 tax If you are a nonresident alien who is married to a U. 2007 tax S. 2007 tax citizen or resident alien at the end of the year, you can choose to be treated as a U. 2007 tax S. 2007 tax resident. 2007 tax (See Publication 519, U. 2007 tax S. 2007 tax Tax Guide for Aliens. 2007 tax ) If you make this choice, you can take the standard deduction. 2007 tax If an exemption for you can be claimed on another person's return (such as your parents' return), your standard deduction may be limited. 2007 tax See Standard Deduction for Dependents, later. 2007 tax Standard Deduction Amount The standard deduction amount depends on your filing status, whether you are 65 or older or blind, and whether an exemption can be claimed for you by another taxpayer. 2007 tax Generally, the standard deduction amounts are adjusted each year for inflation. 2007 tax The standard deduction amounts for most people are shown in Table 20-1. 2007 tax Decedent's final return. 2007 tax   The standard deduction for a decedent's final tax return is the same as it would have been had the decedent continued to live. 2007 tax However, if the decedent was not 65 or older at the time of death, the higher standard deduction for age cannot be claimed. 2007 tax Higher Standard Deduction for Age (65 or Older) If you are age 65 or older on the last day of the year and do not itemize deductions, you are entitled to a higher standard deduction. 2007 tax You are considered 65 on the day before your 65th birthday. 2007 tax Therefore, you can take a higher standard deduction for 2013 if you were born before January 2, 1949. 2007 tax Use Table 20-2 to figure the standard deduction amount. 2007 tax Higher Standard Deduction for Blindness If you are blind on the last day of the year and you do not itemize deductions, you are entitled to a higher standard deduction. 2007 tax Not totally blind. 2007 tax   If you are not totally blind, you must get a certified statement from an eye doctor (ophthalmologist or optometrist) that: You cannot see better than 20/200 in the better eye with glasses or contact lenses, or Your field of vision is 20 degrees or less. 2007 tax   If your eye condition is not likely to improve beyond these limits, the statement should include this fact. 2007 tax You must keep the statement in your records. 2007 tax   If your vision can be corrected beyond these limits only by contact lenses that you can wear only briefly because of pain, infection, or ulcers, you can take the higher standard deduction for blindness if you otherwise qualify. 2007 tax Spouse 65 or Older or Blind You can take the higher standard deduction if your spouse is age 65 or older or blind and: You file a joint return, or You file a separate return and can claim an exemption for your spouse because your spouse had no gross income and cannot be claimed as a dependent by another taxpayer. 2007 tax You cannot claim the higher standard deduction for an individual other than yourself and your spouse. 2007 tax Examples The following examples illustrate how to determine your standard deduction using Tables 20-1 and 20-2. 2007 tax Example 1. 2007 tax Larry, 46, and Donna, 33, are filing a joint return for 2013. 2007 tax Neither is blind, and neither can be claimed as a dependent. 2007 tax They decide not to itemize their deductions. 2007 tax They use Table 20-1. 2007 tax Their standard deduction is $12,200. 2007 tax Example 2. 2007 tax The facts are the same as in Example 1 except that Larry is blind at the end of 2013. 2007 tax Larry and Donna use Table 20-2. 2007 tax Their standard deduction is $13,400. 2007 tax Example 3. 2007 tax Bill and Lisa are filing a joint return for 2013. 2007 tax Both are over age 65. 2007 tax Neither is blind, and neither can be claimed as a dependent. 2007 tax If they do not itemize deductions, they use Table 20-2. 2007 tax Their standard deduction is $14,600. 2007 tax Standard Deduction for Dependents The standard deduction for an individual who can be claimed as a dependent on another person's tax return is generally limited to the greater of: $1,000, or The individual's earned income for the year plus $350 (but not more than the regular standard deduction amount, generally $6,100). 2007 tax However, if the individual is 65 or older or blind, the standard deduction may be higher. 2007 tax If you (or your spouse, if filing jointly) can be claimed as a dependent on someone else's return, use Table 20-3 to determine your standard deduction. 2007 tax Earned income defined. 2007 tax   Earned income is salaries, wages, tips, professional fees, and other amounts received as pay for work you actually perform. 2007 tax    For purposes of the standard deduction, earned income also includes any part of a scholarship or fellowship grant that you must include in your gross income. 2007 tax See Scholarships and fellowships in chapter 12 for more information on what qualifies as a scholarship or fellowship grant. 2007 tax Example 1. 2007 tax Michael is single. 2007 tax His parents can claim an exemption for him on their 2013 tax return. 2007 tax He has interest income of $780 and wages of $150. 2007 tax He has no itemized deductions. 2007 tax Michael uses Table 20-3 to find his standard deduction. 2007 tax He enters $150 (his earned income) on line 1, $500 ($150 + $350) on line 3, $1,000 (the larger of $500 and $1,000) on line 5, and $6,100 on line 6. 2007 tax His standard deduction, on line 7a, is $1,000 (the smaller of $1,000 and $6,100). 2007 tax Example 2. 2007 tax Joe, a 22-year-old full-time college student, can be claimed as a dependent on his parents' 2013 tax return. 2007 tax Joe is married and files a separate return. 2007 tax His wife does not itemize deductions on her separate return. 2007 tax Joe has $1,500 in interest income and wages of $3,800. 2007 tax He has no itemized deductions. 2007 tax Joe finds his standard deduction by using Table 20-3. 2007 tax He enters his earned income, $3,800 on line 1. 2007 tax He adds lines 1 and 2 and enters $4,150 on line 3. 2007 tax On line 5, he enters $4,150, the larger of lines 3 and 4. 2007 tax Because Joe is married filing a separate return, he enters $6,100 on line 6. 2007 tax On line 7a he enters $4,150 as his standard deduction because it is smaller than $6,100, the amount on line 6. 2007 tax Example 3. 2007 tax Amy, who is single, can be claimed as a dependent on her parents' 2013 tax return. 2007 tax She is 18 years old and blind. 2007 tax She has interest income of $1,300 and wages of $2,900. 2007 tax She has no itemized deductions. 2007 tax Amy uses Table 20-3 to find her standard deduction. 2007 tax She enters her wages of $2,900 on line 1. 2007 tax She adds lines 1 and 2 and enters $3,250 on line 3. 2007 tax On line 5, she enters $3,250, the larger of lines 3 and 4. 2007 tax Because she is single, Amy enters $6,100 on line 6. 2007 tax She enters $3,250 on line 7a. 2007 tax This is the smaller of the amounts on lines 5 and 6. 2007 tax Because she checked one box in the top part of the worksheet, she enters $1,500 on line 7b. 2007 tax She then adds the amounts on lines 7a and 7b and enters her standard deduction of $4,750 on line 7c. 2007 tax Example 4. 2007 tax Ed is single. 2007 tax His parents can claim an exemption for him on their 2013 tax return. 2007 tax He has wages of $7,000, interest income of $500, and a business loss of $3,000. 2007 tax He has no itemized deductions. 2007 tax Ed uses Table 20-3 to figure his standard deduction. 2007 tax He enters $4,000 ($7,000 - $3,000) on line 1. 2007 tax He adds lines 1 and 2 and enters $4,350 on line 3. 2007 tax On line 5 he enters $4,350, the larger of lines 3 and 4. 2007 tax Because he is single, Ed enters $6,100 on line 6. 2007 tax On line 7a he enters $4,350 as his standard deduction because it is smaller than $6,100, the amount on line 6. 2007 tax Who Should Itemize You should itemize deductions if your total deductions are more than the standard deduction amount. 2007 tax Also, you should itemize if you do not qualify for the standard deduction, as discussed earlier under Persons not eligible for the standard deduction . 2007 tax You should first figure your itemized deductions and compare that amount to your standard deduction to make sure you are using the method that gives you the greater benefit. 2007 tax You may be subject to a limit on some of your itemized deductions if your adjusted gross income is more than: $250,000 if single ($275,000 if head of household, $300,000 if married filing jointly or qualifying widow(er); or $150,000 if married filing separately). 2007 tax See chapter 29 or the instructions for Schedule A (Form 1040) for more information on figuring the correct amount of your itemized deductions. 2007 tax When to itemize. 2007 tax   You may benefit from itemizing your deductions on Schedule A (Form 1040) if you: Do not qualify for the standard deduction, or the amount you can claim is limited, Had large uninsured medical and dental expenses during the year, Paid interest and taxes on your home, Had large unreimbursed employee business expenses or other miscellaneous deductions, Had large uninsured casualty or theft losses, Made large contributions to qualified charities, or Have total itemized deductions that are more than the standard deduction to which you otherwise are entitled. 2007 tax These deductions are explained in chapters 21–28. 2007 tax    If you decide to itemize your deductions, complete Schedule A and attach it to your Form 1040. 2007 tax Enter the amount from Schedule A, line 29, on Form 1040, line 40. 2007 tax Electing to itemize for state tax or other purposes. 2007 tax   Even if your itemized deductions are less than your standard deduction, you can elect to itemize deductions on your federal return rather than take the standard deduction. 2007 tax You may want to do this if, for example, the tax benefit of itemizing your deductions on your state tax return is greater than the tax benefit you lose on your federal return by not taking the standard deduction. 2007 tax To make this election, you must check the box on line 30 of Schedule A. 2007 tax Changing your mind. 2007 tax   If you do not itemize your deductions and later find that you should have itemized — or if you itemize your deductions and later find you should not have — you can change your return by filing Form 1040X, Amended U. 2007 tax S. 2007 tax Individual Income Tax Return. 2007 tax See Amended Returns and Claims for Refund in chapter 1 for more information on amended returns. 2007 tax Married persons who filed separate returns. 2007 tax   You can change methods of taking deductions only if you and your spouse both make the same changes. 2007 tax Both of you must file a consent to assessment for any additional tax either one may owe as a result of the change. 2007 tax    You and your spouse can use the method that gives you the lower total tax, even though one of you may pay more tax than you would have paid by using the other method. 2007 tax You both must use the same method of claiming deductions. 2007 tax If one itemizes deductions, the other should itemize because he or she will not qualify for the standard deduction. 2007 tax See Persons not eligible for the standard deduction , earlier. 2007 tax 2013 Standard Deduction Tables If you are married filing a separate return and your spouse itemizes deductions, or if you are a dual-status alien, you cannot take the standard deduction even if you were born before January 2, 1949, or are blind. 2007 tax Table 20-1. 2007 tax Standard Deduction Chart for Most People* If your filing status is. 2007 tax . 2007 tax . 2007 tax Your standard deduction is: Single or Married filing separately $6,100 Married filing jointly or Qualifying widow(er) with dependent child 12,200 Head of household 8,950 *Do not use this chart if you were born before January 2, 1949, are blind, or if someone else can claim you (or your spouse if filing jointly) as a dependent. 2007 tax Use Table 20-2 or 20-3 instead. 2007 tax Table 20-2. 2007 tax Standard Deduction Chart for People Born Before January 2, 1949, or Who are Blind Check the correct number of boxes below. 2007 tax Then go to the chart. 2007 tax You: Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked   IF  your filing status is. 2007 tax . 2007 tax . 2007 tax AND the number in the box above is. 2007 tax . 2007 tax . 2007 tax THEN your standard deduction is. 2007 tax . 2007 tax . 2007 tax Single 1 $7,600   2 9,100 Married filing jointly 1 $13,400 or Qualifying 2 14,600 widow(er) with 3 15,800 dependent child 4 17,000 Married filing 1 $7,300 separately 2 8,500   3 9,700   4 10,900 Head of household 1 $10,450   2 11,950 *If someone else can claim you (or your spouse if filing jointly) as a dependent, use Table 20-3 instead. 2007 tax Table 20-3. 2007 tax Standard Deduction Worksheet for Dependents Use this worksheet only if someone else can claim you (or your spouse if filing jointly) as a dependent. 2007 tax Check the correct number of boxes below. 2007 tax Then go to the worksheet. 2007 tax You:   Born before January 2, 1949 □ Blind □ Your spouse, if claiming spouse's exemption: Born before January 2, 1949 □ Blind □ Total number of boxes checked 1. 2007 tax Enter your earned income (defined below). 2007 tax If none, enter -0-. 2007 tax 1. 2007 tax   2. 2007 tax Additional amount. 2007 tax 2. 2007 tax $350 3. 2007 tax Add lines 1 and 2. 2007 tax 3. 2007 tax   4. 2007 tax Minimum standard deduction. 2007 tax 4. 2007 tax $1,000 5. 2007 tax Enter the larger of line 3 or line 4. 2007 tax 5. 2007 tax   6. 2007 tax Enter the amount shown below for your filing status. 2007 tax Single or Married filing separately—$6,100 Married filing jointly—$12,200 Head of household—$8,950 6. 2007 tax   7. 2007 tax Standard deduction. 2007 tax         a. 2007 tax Enter the smaller of line 5 or line 6. 2007 tax If born after January 1, 1949, and not blind, stop here. 2007 tax This is your standard deduction. 2007 tax Otherwise, go on to line 7b. 2007 tax 7a. 2007 tax     b. 2007 tax If born before January 2, 1949, or blind, multiply $1,500 ($1,200 if married) by the number in the box above. 2007 tax 7b. 2007 tax     c. 2007 tax Add lines 7a and 7b. 2007 tax This is your standard deduction for 2013. 2007 tax 7c. 2007 tax   Earned income includes wages, salaries, tips, professional fees, and other compensation received for personal services you performed. 2007 tax It also includes any amount received as a scholarship that you must include in your income. 2007 tax Prev  Up  Next   Home   More Online Publications
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LT 27 (Letter 1737) Frequently Asked Questions (FAQs)

What is the notice telling me?

We received your request for a payment plan and need you to complete financial information to determine whether you qualify for an installment agreement.

What do I have to do?

Complete the Form 433F that was included with the letter. This information may either be mailed in, or you may call the number at the top of the notice and provide the same information to speed the determination on your installment agreement request. If you have not filed any tax returns that are due, this action must be completed before an installment agreement will be considered. If the returns are completed, please have them available when you call; you may be able to fax them in to meet the filing requirement.

How much time do I have?

Contact us as soon as possible but no later than seven days from the date of the letter.

What happens if I don't pay?

Collection action could be taken, including the filing of a Notice of Federal Tax Lien or a garnishment of wages, other income sources, and/or bank accounts, to resolve the balance you owe.

Who should I contact?

Call the number shown on the top of the letter, or mail in the requested Form 433F with any required documentation and any signed tax returns that need to be filed.

What if I don't agree or have already taken corrective action?

If you do not agree or cannot comply with this notice, call us immediately at the number printed at the top of the notice. We will do our best to help you. If you called us about this matter before, but we did not correct the problem, you may want to contact the Office of the Taxpayer Advocate.

If you have already paid or arranged for an installment agreement, you should still call us at the number printed at the top of the notice to make sure your account reflects this.

Page Last Reviewed or Updated: 30-Jan-2014

The 2007 Tax

2007 tax Publication 54 - Additional Material Questions and AnswersThis section answers tax- related questions commonly asked by taxpayers living abroad. 2007 tax 1. 2007 tax Filing Requirements—Where, When, and How . 2007 tax 1) When are U. 2007 tax S. 2007 tax income tax returns due? . 2007 tax 2) I am going abroad this year and expect to qualify for the foreign earned income exclusion. 2007 tax How can I secure an extension of time to file my return, when should I file my return, and what forms are required? . 2007 tax 3) My entire income qualifies for the foreign earned income exclusion. 2007 tax Must I file a tax return? . 2007 tax 4) I was sent abroad by my company in November of last year. 2007 tax I plan to secure an extension of time on Form 2350 to file my tax return for last year because I expect to qualify for the foreign earned income exclusion under the physical presence test. 2007 tax However, if my company recalls me to the United States before the end of the qualifying period and I find I will not qualify for the exclusion, how and when should I file my return? . 2007 tax 5) I am a U. 2007 tax S. 2007 tax citizen and have no taxable income from the United States, but I have substantial income from a foreign source. 2007 tax Am I required to file a U. 2007 tax S. 2007 tax income tax return? . 2007 tax 6) I am a U. 2007 tax S. 2007 tax citizen who has retired, and I expect to remain in a foreign country. 2007 tax Do I have any further U. 2007 tax S. 2007 tax tax obligations? . 2007 tax 7) I have been a bona fide resident of a foreign country for over 5 years. 2007 tax Is it necessary for me to pay estimated tax? . 2007 tax 8) Will a check payable in foreign currency be acceptable in payment of my U. 2007 tax S. 2007 tax tax? . 2007 tax 9) I have met the test for physical presence in a foreign country and am filing returns for 2 years. 2007 tax Must I file a separate Form 2555 (or Form 2555-EZ) with each return? . 2007 tax 10) Does a Form 2555 (or 2555-EZ) with a Schedule C or Form W-2 attached constitute a return? . 2007 tax 11) On Form 2350, Application for Extension of Time To File U. 2007 tax S. 2007 tax Income Tax Return, I stated that I would qualify for the foreign earned income exclusion under the physical presence test. 2007 tax If I qualify under the bona fide residence test, can I file my return on that basis? . 2007 tax 12) I am a U. 2007 tax S. 2007 tax citizen who worked in the United States for 6 months last year. 2007 tax I accepted employment overseas in July of last year and expect to qualify for the foreign earned income exclusion. 2007 tax Should I file a return and pay tax on the income earned in the United States during the first 6 months and then, when I qualify, file another return covering the last 6 months of the year? . 2007 tax 13) I am a U. 2007 tax S. 2007 tax citizen. 2007 tax I have lived abroad for a number of years and recently realized that I should have been filing U. 2007 tax S. 2007 tax income tax returns. 2007 tax How do I correct this oversight in not having filed returns for these years? . 2007 tax 14) In 2008, I qualified to exclude my foreign earned income, but I did not claim this exclusion on the return I filed in 2009. 2007 tax I paid all outstanding taxes with the return. 2007 tax Can I file a claim for refund now? . 2007 tax 1) When are U. 2007 tax S. 2007 tax income tax returns due? Generally, for calendar year taxpayers, U. 2007 tax S. 2007 tax income tax returns are due on April 15. 2007 tax If you are a U. 2007 tax S. 2007 tax citizen or resident and both your tax home and your abode are outside the United States and Puerto Rico on the regular due date, an automatic extension is granted to June 15 for filing the return. 2007 tax Interest will be charged on any tax due, as shown on the return, from April 15. 2007 tax a) You should file Form 2350 by the due date of your return to request an extension of time to file. 2007 tax Form 2350 is a special form for those U. 2007 tax S. 2007 tax citizens or residents abroad who expect to qualify for the foreign earned income exclusion or the housing exclusion or deduction under either the bona fide residence test or physical presence test and would like to have an extension of time to delay filing until after they have qualified. 2007 tax b) If the extension is granted, you should file your return after you qualify, but by the approved extension date. 2007 tax c) You must file your Form 1040 with Form 2555 (or Form 2555-EZ). 2007 tax Generally, yes. 2007 tax Every U. 2007 tax S. 2007 tax citizen or resident who receives income must file a U. 2007 tax S. 2007 tax income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. 2007 tax The income levels for filing purposes are discussed under Filing Requirements in chapter 1. 2007 tax If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. 2007 tax Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. 2007 tax You must report your worldwide income on the return. 2007 tax If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. 2007 tax S. 2007 tax income tax. 2007 tax However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. 2007 tax Yes. 2007 tax All U. 2007 tax S. 2007 tax citizens and resident aliens are subject to U. 2007 tax S. 2007 tax tax on their worldwide income. 2007 tax If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. 2007 tax S. 2007 tax income tax liability for the foreign taxes paid. 2007 tax Form 1116 is used to figure the allowable credit. 2007 tax Your U. 2007 tax S. 2007 tax tax obligation on your income is the same as that of a retired person living in the United States. 2007 tax (See the discussion on filing requirements in chapter 1 of this publication. 2007 tax ) U. 2007 tax S. 2007 tax taxpayers overseas have the same requirements for paying estimated tax as those in the United States. 2007 tax See the discussion under Estimated Tax in chapter 1. 2007 tax Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. 2007 tax S. 2007 tax taxation. 2007 tax Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. 2007 tax The first installment of estimated tax is due on April 15 of the year for which the income is earned. 2007 tax Generally, only U. 2007 tax S. 2007 tax currency is acceptable for payment of income tax. 2007 tax However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. 2007 tax Yes. 2007 tax A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. 2007 tax No. 2007 tax The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. 2007 tax Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 2) I am going abroad this year and expect to qualify for the foreign earned income exclusion. 2007 tax How can I secure an extension of time to file my return, when should I file my return, and what forms are required? a) You should file Form 2350 by the due date of your return to request an extension of time to file. 2007 tax Form 2350 is a special form for those U. 2007 tax S. 2007 tax citizens or residents abroad who expect to qualify for the foreign earned income exclusion or the housing exclusion or deduction under either the bona fide residence test or physical presence test and would like to have an extension of time to delay filing until after they have qualified. 2007 tax b) If the extension is granted, you should file your return after you qualify, but by the approved extension date. 2007 tax c) You must file your Form 1040 with Form 2555 (or Form 2555-EZ). 2007 tax Generally, yes. 2007 tax Every U. 2007 tax S. 2007 tax citizen or resident who receives income must file a U. 2007 tax S. 2007 tax income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. 2007 tax The income levels for filing purposes are discussed under Filing Requirements in chapter 1. 2007 tax If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. 2007 tax Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. 2007 tax You must report your worldwide income on the return. 2007 tax If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. 2007 tax S. 2007 tax income tax. 2007 tax However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. 2007 tax Yes. 2007 tax All U. 2007 tax S. 2007 tax citizens and resident aliens are subject to U. 2007 tax S. 2007 tax tax on their worldwide income. 2007 tax If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. 2007 tax S. 2007 tax income tax liability for the foreign taxes paid. 2007 tax Form 1116 is used to figure the allowable credit. 2007 tax Your U. 2007 tax S. 2007 tax tax obligation on your income is the same as that of a retired person living in the United States. 2007 tax (See the discussion on filing requirements in chapter 1 of this publication. 2007 tax ) U. 2007 tax S. 2007 tax taxpayers overseas have the same requirements for paying estimated tax as those in the United States. 2007 tax See the discussion under Estimated Tax in chapter 1. 2007 tax Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. 2007 tax S. 2007 tax taxation. 2007 tax Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. 2007 tax The first installment of estimated tax is due on April 15 of the year for which the income is earned. 2007 tax Generally, only U. 2007 tax S. 2007 tax currency is acceptable for payment of income tax. 2007 tax However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. 2007 tax Yes. 2007 tax A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. 2007 tax No. 2007 tax The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. 2007 tax Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 3) My entire income qualifies for the foreign earned income exclusion. 2007 tax Must I file a tax return? Generally, yes. 2007 tax Every U. 2007 tax S. 2007 tax citizen or resident who receives income must file a U. 2007 tax S. 2007 tax income tax return unless total income without regard to the foreign earned income exclusion is below an amount based on filing status. 2007 tax The income levels for filing purposes are discussed under Filing Requirements in chapter 1. 2007 tax If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. 2007 tax Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. 2007 tax You must report your worldwide income on the return. 2007 tax If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. 2007 tax S. 2007 tax income tax. 2007 tax However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. 2007 tax Yes. 2007 tax All U. 2007 tax S. 2007 tax citizens and resident aliens are subject to U. 2007 tax S. 2007 tax tax on their worldwide income. 2007 tax If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. 2007 tax S. 2007 tax income tax liability for the foreign taxes paid. 2007 tax Form 1116 is used to figure the allowable credit. 2007 tax Your U. 2007 tax S. 2007 tax tax obligation on your income is the same as that of a retired person living in the United States. 2007 tax (See the discussion on filing requirements in chapter 1 of this publication. 2007 tax ) U. 2007 tax S. 2007 tax taxpayers overseas have the same requirements for paying estimated tax as those in the United States. 2007 tax See the discussion under Estimated Tax in chapter 1. 2007 tax Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. 2007 tax S. 2007 tax taxation. 2007 tax Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. 2007 tax The first installment of estimated tax is due on April 15 of the year for which the income is earned. 2007 tax Generally, only U. 2007 tax S. 2007 tax currency is acceptable for payment of income tax. 2007 tax However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. 2007 tax Yes. 2007 tax A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. 2007 tax No. 2007 tax The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. 2007 tax Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 4) I was sent abroad by my company in November of last year. 2007 tax I plan to secure an extension of time on Form 2350 to file my tax return for last year because I expect to qualify for the foreign earned income exclusion under the physical presence test. 2007 tax However, if my company recalls me to the United States before the end of the qualifying period and I find I will not qualify for the exclusion, how and when should I file my return? If your regular filing date has passed, you should file a return, Form 1040, as soon as possible for last year. 2007 tax Include a statement with this return noting that you have returned to the United States and will not qualify for the foreign earned income exclusion. 2007 tax You must report your worldwide income on the return. 2007 tax If you paid a foreign tax on the income earned abroad, you may be able to either deduct this tax as an itemized deduction or claim it as a credit against your U. 2007 tax S. 2007 tax income tax. 2007 tax However, if you pay the tax due after the regular due date, interest will be charged from the regular due date until the date the tax is paid. 2007 tax Yes. 2007 tax All U. 2007 tax S. 2007 tax citizens and resident aliens are subject to U. 2007 tax S. 2007 tax tax on their worldwide income. 2007 tax If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. 2007 tax S. 2007 tax income tax liability for the foreign taxes paid. 2007 tax Form 1116 is used to figure the allowable credit. 2007 tax Your U. 2007 tax S. 2007 tax tax obligation on your income is the same as that of a retired person living in the United States. 2007 tax (See the discussion on filing requirements in chapter 1 of this publication. 2007 tax ) U. 2007 tax S. 2007 tax taxpayers overseas have the same requirements for paying estimated tax as those in the United States. 2007 tax See the discussion under Estimated Tax in chapter 1. 2007 tax Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. 2007 tax S. 2007 tax taxation. 2007 tax Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. 2007 tax The first installment of estimated tax is due on April 15 of the year for which the income is earned. 2007 tax Generally, only U. 2007 tax S. 2007 tax currency is acceptable for payment of income tax. 2007 tax However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. 2007 tax Yes. 2007 tax A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. 2007 tax No. 2007 tax The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. 2007 tax Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 5) I am a U. 2007 tax S. 2007 tax citizen and have no taxable income from the United States, but I have substantial income from a foreign source. 2007 tax Am I required to file a U. 2007 tax S. 2007 tax income tax return? Yes. 2007 tax All U. 2007 tax S. 2007 tax citizens and resident aliens are subject to U. 2007 tax S. 2007 tax tax on their worldwide income. 2007 tax If you paid taxes to a foreign government on income from sources outside the United States, you may be able to claim a foreign tax credit against your U. 2007 tax S. 2007 tax income tax liability for the foreign taxes paid. 2007 tax Form 1116 is used to figure the allowable credit. 2007 tax Your U. 2007 tax S. 2007 tax tax obligation on your income is the same as that of a retired person living in the United States. 2007 tax (See the discussion on filing requirements in chapter 1 of this publication. 2007 tax ) U. 2007 tax S. 2007 tax taxpayers overseas have the same requirements for paying estimated tax as those in the United States. 2007 tax See the discussion under Estimated Tax in chapter 1. 2007 tax Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. 2007 tax S. 2007 tax taxation. 2007 tax Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. 2007 tax The first installment of estimated tax is due on April 15 of the year for which the income is earned. 2007 tax Generally, only U. 2007 tax S. 2007 tax currency is acceptable for payment of income tax. 2007 tax However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. 2007 tax Yes. 2007 tax A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. 2007 tax No. 2007 tax The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. 2007 tax Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 6) I am a U. 2007 tax S. 2007 tax citizen who has retired, and I expect to remain in a foreign country. 2007 tax Do I have any further U. 2007 tax S. 2007 tax tax obligations? Your U. 2007 tax S. 2007 tax tax obligation on your income is the same as that of a retired person living in the United States. 2007 tax (See the discussion on filing requirements in chapter 1 of this publication. 2007 tax ) U. 2007 tax S. 2007 tax taxpayers overseas have the same requirements for paying estimated tax as those in the United States. 2007 tax See the discussion under Estimated Tax in chapter 1. 2007 tax Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. 2007 tax S. 2007 tax taxation. 2007 tax Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. 2007 tax The first installment of estimated tax is due on April 15 of the year for which the income is earned. 2007 tax Generally, only U. 2007 tax S. 2007 tax currency is acceptable for payment of income tax. 2007 tax However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. 2007 tax Yes. 2007 tax A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. 2007 tax No. 2007 tax The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. 2007 tax Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 7) I have been a bona fide resident of a foreign country for over 5 years. 2007 tax Is it necessary for me to pay estimated tax? U. 2007 tax S. 2007 tax taxpayers overseas have the same requirements for paying estimated tax as those in the United States. 2007 tax See the discussion under Estimated Tax in chapter 1. 2007 tax Overseas taxpayers should not include in their estimated income any income they receive that is, or will be, exempt from U. 2007 tax S. 2007 tax taxation. 2007 tax Overseas taxpayers can deduct their estimated housing deduction in figuring their estimated tax. 2007 tax The first installment of estimated tax is due on April 15 of the year for which the income is earned. 2007 tax Generally, only U. 2007 tax S. 2007 tax currency is acceptable for payment of income tax. 2007 tax However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. 2007 tax Yes. 2007 tax A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. 2007 tax No. 2007 tax The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. 2007 tax Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 8) Will a check payable in foreign currency be acceptable in payment of my U. 2007 tax S. 2007 tax tax? Generally, only U. 2007 tax S. 2007 tax currency is acceptable for payment of income tax. 2007 tax However, if you are a Fulbright grantee, see Fulbright Grant in chapter 1. 2007 tax Yes. 2007 tax A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. 2007 tax No. 2007 tax The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. 2007 tax Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 9) I have met the test for physical presence in a foreign country and am filing returns for 2 years. 2007 tax Must I file a separate Form 2555 (or Form 2555-EZ) with each return? Yes. 2007 tax A Form 2555 (or Form 2555-EZ) must be filed with each Form 1040 tax return on which the benefits of income earned abroad are claimed. 2007 tax No. 2007 tax The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. 2007 tax Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 10) Does a Form 2555 (or 2555-EZ) with a Schedule C or Form W-2 attached constitute a return? No. 2007 tax The Form 2555 (or 2555-EZ), Schedule C, and Form W-2 are merely attachments and do not relieve you of the requirement to file a Form 1040 to show the sources of income reported and the exclusions or deductions claimed. 2007 tax Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 11) On Form 2350, Application for Extension of Time To File U. 2007 tax S. 2007 tax Income Tax Return, I stated that I would qualify for the foreign earned income exclusion under the physical presence test. 2007 tax If I qualify under the bona fide residence test, can I file my return on that basis? Yes. 2007 tax You can claim the foreign earned income exclusion and the foreign housing exclusion or deduction under either test as long as you meet the requirements. 2007 tax You are not bound by the test indicated in the application for extension of time. 2007 tax You must be sure, however, that you file the Form 1040 by the date approved on Form 2350, since a return filed after that date may be subject to a failure to file penalty. 2007 tax If you will not qualify under the bona fide residence test until a date later than the extension granted under the physical presence rule, apply for a new extension to a date 30 days beyond the date you expect to qualify as a bona fide resident. 2007 tax No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 12) I am a U. 2007 tax S. 2007 tax citizen who worked in the United States for 6 months last year. 2007 tax I accepted employment overseas in July of last year and expect to qualify for the foreign earned income exclusion. 2007 tax Should I file a return and pay tax on the income earned in the United States during the first 6 months and then, when I qualify, file another return covering the last 6 months of the year? No. 2007 tax You have the choice of one of the following two methods of filing your return: a) You can file your return when due under the regular filing rules, report all your income without excluding your foreign earned income, and pay the tax due. 2007 tax After you have qualified for the exclusion, you can file an amended return, Form 1040X, accompanied by Form 2555 (or 2555-EZ), for a refund of any excess tax paid. 2007 tax b) You can postpone the filing of your tax return by applying on Form 2350 for an extension of time to file to a date 30 days beyond the date you expect to qualify under either the bona fide residence test or the physical presence test, then file your return reflecting the exclusion of foreign earned income. 2007 tax This allows you to file only once and saves you from paying the tax and waiting for a refund. 2007 tax However, interest is charged on any tax due on the postponed tax return, but interest is not paid on refunds paid within 45 days after the return is filed. 2007 tax If you have moving expenses that are for services performed in two years, you can be granted an extension until after the end of the second year. 2007 tax File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 13) I am a U. 2007 tax S. 2007 tax citizen. 2007 tax I have lived abroad for a number of years and recently realized that I should have been filing U. 2007 tax S. 2007 tax income tax returns. 2007 tax How do I correct this oversight in not having filed returns for these years? File the late returns as soon as possible, stating your reason for filing late. 2007 tax For advice on filing the returns, you should contact an  Internal Revenue Service representative in one of the four overseas offices listed in chapter 7. 2007 tax It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax . 2007 tax 14) In 2008, I qualified to exclude my foreign earned income, but I did not claim this exclusion on the return I filed in 2009. 2007 tax I paid all outstanding taxes with the return. 2007 tax Can I file a claim for refund now? It is too late to claim this refund since a claim for refund must be filed within 3 years from the date the return was filed or 2 years from the date the tax was paid, whichever is later. 2007 tax A return filed before the due date is considered filed on the due date. 2007 tax 2. 2007 tax Meeting the Requirements of Either the Bona Fide Residence Test or the Physical Presence Test . 2007 tax 1) I recently came to Country X to work for the Orange Tractor Co. 2007 tax and I expect to be here for 5 or 6 years. 2007 tax I understand that upon the completion of 1 full year I will qualify for an exclusion or deduction under the bona fide residence test. 2007 tax Is this correct? . 2007 tax 2) I understand the physical presence test to be simply a matter of being physically present in a foreign country for at least 330 days within 12 consecutive months; but what are the criteria of the bona fide residence test? . 2007 tax 3) To meet the qualification of an uninterrupted period which includes an entire taxable year, do I have to be physically present in a foreign country for the entire year? . 2007 tax 4) I am a U. 2007 tax S. 2007 tax citizen and during 2012 was a bona fide resident of Country X. 2007 tax On January 15, 2013, I was notified that I was to be assigned to Country Y. 2007 tax I was recalled to New York for 90 days orientation and then went to Country Y, where I have been since. 2007 tax Although I was not in Country Y on January 1, I was a bona fide resident of Country X and was in Country Y on December 31, 2013. 2007 tax My family remained in Country X until completion of the orientation period, and my household goods were shipped directly to my new post. 2007 tax Am I a bona fide resident of a foreign country for 2013, or must I wait for the entire year of 2014 to become one? . 2007 tax 5) Due to illness, I returned to the United States before I completed my qualifying period to claim the foreign earned income exclusion. 2007 tax Can I figure the exclusion for the period I resided abroad? . 2007 tax 6) Can a resident alien of the United States qualify for an exclusion or deduction under the bona fide residence test or the physical presence test? . 2007 tax 7) On August 13 of last year I left the United States and arrived in Country Z to work for the Gordon Manufacturing Company. 2007 tax I expected to be able to exclude my foreign earned income under the physical presence test because I planned to be in Country Z for at least 1 year. 2007 tax However, I was reassigned back to the United States and left Country Z on July 1 of this year. 2007 tax Can I exclude any of my foreign earned income? . 2007 tax 1) I recently came to Country X to work for the Orange Tractor Co. 2007 tax and I expect to be here for 5 or 6 years. 2007 tax I understand that upon the completion of 1 full year I will qualify for an exclusion or deduction under the bona fide residence test. 2007 tax Is this correct? Not necessarily. 2007 tax The law provides that to qualify under this test for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, a person must be a “bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year. 2007 tax ” If, like most U. 2007 tax S. 2007 tax citizens, you file your return on a calendar year basis, the taxable year referred to in the law would be from January 1 to December 31 of any particular year. 2007 tax Unless you established residence in Country X on January 1, it would be more than 1 year before you would be a bona fide resident of a foreign country. 2007 tax Once you have completed your qualifying period, however, you are entitled to exclude the income or to claim the housing exclusion or deduction from the date you established bona fide residence. 2007 tax To be a bona fide resident of a foreign country, you must show that you entered a foreign country intending to remain there for an indefinite or prolonged period and, to that end, you are making your home in that country. 2007 tax Consideration is given to the type of quarters occupied, whether your family went with you, the type of visa, the employment agreement, and any other factor pertinent to show whether your stay in the foreign country is indefinite or prolonged. 2007 tax To claim the foreign earned income exclusion or foreign housing exclusion or deduction under this test, the period of foreign residence must include 1 full tax year (usually January 1 – December 31), but once you meet this time requirement, you figure the exclusions and the deduction from the date the residence actually began. 2007 tax No. 2007 tax Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. 2007 tax During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. 2007 tax To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. 2007 tax Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. 2007 tax No. 2007 tax You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. 2007 tax If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. 2007 tax S. 2007 tax tax. 2007 tax Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. 2007 tax Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. 2007 tax No. 2007 tax You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. 2007 tax . 2007 tax 2) I understand the physical presence test to be simply a matter of being physically present in a foreign country for at least 330 days within 12 consecutive months; but what are the criteria of the bona fide residence test? To be a bona fide resident of a foreign country, you must show that you entered a foreign country intending to remain there for an indefinite or prolonged period and, to that end, you are making your home in that country. 2007 tax Consideration is given to the type of quarters occupied, whether your family went with you, the type of visa, the employment agreement, and any other factor pertinent to show whether your stay in the foreign country is indefinite or prolonged. 2007 tax To claim the foreign earned income exclusion or foreign housing exclusion or deduction under this test, the period of foreign residence must include 1 full tax year (usually January 1 – December 31), but once you meet this time requirement, you figure the exclusions and the deduction from the date the residence actually began. 2007 tax No. 2007 tax Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. 2007 tax During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. 2007 tax To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. 2007 tax Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. 2007 tax No. 2007 tax You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. 2007 tax If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. 2007 tax S. 2007 tax tax. 2007 tax Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. 2007 tax Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. 2007 tax No. 2007 tax You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. 2007 tax . 2007 tax 3) To meet the qualification of “an uninterrupted period which includes an entire taxable year,” do I have to be physically present in a foreign country for the entire year? No. 2007 tax Uninterrupted refers to the bona fide residence proper and not to the physical presence of the individual. 2007 tax During the period of bona fide residence in a foreign country, even during the first full year, you can leave the country for brief and temporary trips back to the United States or elsewhere for vacation, or even for business. 2007 tax To preserve your status as a bona fide resident of a foreign country, you must have a clear intention of returning from those trips, without unreasonable delay, to your foreign residence. 2007 tax Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. 2007 tax No. 2007 tax You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. 2007 tax If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. 2007 tax S. 2007 tax tax. 2007 tax Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. 2007 tax Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. 2007 tax No. 2007 tax You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. 2007 tax . 2007 tax 4) I am a U. 2007 tax S. 2007 tax citizen and during 2012 was a bona fide resident of Country X. 2007 tax On January 15, 2013, I was notified that I was to be assigned to Country Y. 2007 tax I was recalled to New York for 90 days orientation and then went to Country Y, where I have been since. 2007 tax Although I was not in Country Y on January 1, I was a bona fide resident of Country X and was in Country Y on December 31, 2013. 2007 tax My family remained in Country X until completion of the orientation period, and my household goods were shipped directly to my new post. 2007 tax Am I a bona fide resident of a foreign country for 2013, or must I wait for the entire year of 2014 to become one? Since you did not break your period of foreign residence, you would continue to be a bona fide resident of a foreign country for 2013. 2007 tax No. 2007 tax You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. 2007 tax If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. 2007 tax S. 2007 tax tax. 2007 tax Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. 2007 tax Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. 2007 tax No. 2007 tax You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. 2007 tax . 2007 tax 5) Due to illness, I returned to the United States before I completed my qualifying period to claim the foreign earned income exclusion. 2007 tax Can I figure the exclusion for the period I resided abroad? No. 2007 tax You are not entitled to any exclusion of foreign earned income since you did not complete your qualifying period under either the bona fide residence test or physical presence test. 2007 tax If you paid foreign tax on the income earned abroad, you may be able to claim that tax as a deduction or as a credit against your U. 2007 tax S. 2007 tax tax. 2007 tax Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. 2007 tax Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. 2007 tax No. 2007 tax You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. 2007 tax . 2007 tax 6) Can a resident alien of the United States qualify for an exclusion or deduction under the bona fide residence test or the physical presence test? Resident aliens of the United States can qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction if they meet the requirements of the physical presence test. 2007 tax Resident aliens who are citizens or nationals of a country with which the United States has an income tax treaty in effect also can qualify under the bona fide residence test. 2007 tax No. 2007 tax You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. 2007 tax . 2007 tax 7) On August 13 of last year I left the United States and arrived in Country Z to work for the Gordon Manufacturing Company. 2007 tax I expected to be able to exclude my foreign earned income under the physical presence test because I planned to be in Country Z for at least 1 year. 2007 tax However, I was reassigned back to the United States and left Country Z on July 1 of this year. 2007 tax Can I exclude any of my foreign earned income? No. 2007 tax You cannot exclude any of the income you earned in Country Z because you were not in a foreign country for at least 330 full days as required under the physical presence test. 2007 tax 3. 2007 tax Foreign Earned Income . 2007 tax 1) I am an employee of the U. 2007 tax S. 2007 tax Government working abroad. 2007 tax Can all or part of my government income earned abroad qualify for the foreign earned income exclusion? . 2007 tax 2) I qualify for the foreign earned income exclusion under the bona fide residence test. 2007 tax Does my foreign earned income include my U. 2007 tax S. 2007 tax dividends and the interest I receive on a foreign bank account? . 2007 tax 3) My company pays my foreign income tax on my foreign earnings. 2007 tax Is this taxable compensation? . 2007 tax 4) I live in an apartment in a foreign city for which my employer pays the rent. 2007 tax Should I include in my income the cost to my employer ($1,200 a month) or the fair market value of equivalent housing in the United States ($800 a month)? . 2007 tax 5) My U. 2007 tax S. 2007 tax employer pays my salary into my U. 2007 tax S. 2007 tax bank account. 2007 tax Is this income considered earned in the United States or is it considered foreign earned income? . 2007 tax 6) What is considered a foreign country? . 2007 tax 7) What is the source of earned income? . 2007 tax 1) I am an employee of the U. 2007 tax S. 2007 tax Government working abroad. 2007 tax Can all or part of my government income earned abroad qualify for the foreign earned income exclusion? No. 2007 tax The foreign earned income exclusion applies to your foreign earned income. 2007 tax Amounts paid by the United States or its agencies to their employees are not treated, for this purpose, as foreign earned income. 2007 tax No. 2007 tax The only income that is foreign earned income is income from the performance of personal services abroad. 2007 tax Investment income is not earned income. 2007 tax However, you must include it in gross income reported on your Form 1040. 2007 tax Yes. 2007 tax The amount is compensation for services performed. 2007 tax The tax paid by your company should be reported on Form 1040, line 7, and on Form 2555, Part IV, line 22(f) (or on Form 2555-EZ, Part IV, line 17). 2007 tax You must include in income the fair market value (FMV) of the facility provided, where it is provided. 2007 tax This will usually be the rent your employer pays. 2007 tax Situations when the FMV is not included in income are discussed in chapter 4 under Exclusion of Meals and Lodging. 2007 tax If you performed the services to earn this salary outside the United States, your salary is considered earned abroad. 2007 tax It does not matter that you are paid by a U. 2007 tax S. 2007 tax employer or that your salary is deposited in a U. 2007 tax S. 2007 tax bank account in the United States. 2007 tax The source of salary, wages, commissions, and other personal service income is the place where you perform the services. 2007 tax For the purposes of the foreign earned income exclusion and the foreign housing exclusion or deduction, any territory under the sovereignty of a countr