2555 few questions

chrislat3 · Post by **chrislat3** » Sat Sep 24, 2011 8:47 am

It was recently brought to our attention that because my 21 year old son's mother is an American citizen and applied for a Social security number for him after his birth, that he is an American and should be filing a tax return to the IRS, even though he was born and lived in Canada all his life and has been compliant in Canada with the CRA.

We would like to be in compliance with the IRS and are going to submit his past 3 years of student tax returns starting with 2008 and want to include the 2555 form for A foreign Income Tax exclusion but have a few questions concerning the form.

Under the Bona Fide Residence Test, Part 1: Tests To See If You Can Take the Foreign Earned Income Exclusion it says:"Enter the date your bona fide residence began." Should I put his birth date since he was born and has always lived in Canada?

Under Part II General Information, #11a: List your tax home(s) during 2008 and date(s) established. Again, should I put the date established as his birth date since he lived in Canada all his life?

#11b. Of what country are you a citizen/national? Should I put Canada/US? since he has been a dual citizen since birth?

On the 2010 2555 Part II Question 15a says: Enter the type of visa under which you entered the foreign country. Shall I write none?

I would appreciate any help.

nelsona · Post by **nelsona** » Sat Sep 24, 2011 1:52 pm

First off, rememeber that 2555 applies ONLY to wages, nt any other type of income.

there is no student tax return. There is the 1040.

You can put 1990 for start
The rest are pretty self-explanatory.

chrislat3 · Post by **chrislat3** » Sun Sep 25, 2011 7:37 pm

Thanks for your quick response, he has no other income to date...can't save a dime in his pocket or in a bank so I think a 1040 and 2555 will be all that is needed!

Jyrki21 · Post by **Jyrki21** » Mon Sep 26, 2011 3:12 pm

In its voraciousness to shake money out of foreign residents, even the IRS has a minimum income amount before which one need not file taxes. In 2010, for a dependent child, the minimum to require a return was:

Unearned income > $950. OR

Earned income > $5,700. OR

Gross income was more than the larger of $950, or earned income (up to $5,400) plus $300.

http://www.irs.gov/publications/p501/ar ... 1000220703