My wife moved to US in June 2013. I moved a year earlier. Filing joint full-year for 2013.
My question is about form 2555. My wife does not meet PPT because she paid me a few visits over the year we were apart. I have found evidence in other threads that there may be a treaty position that allows use of bona fide residence instead. Is this still the case? Which treaty article would I give on 8833?
Thanks!
FEIE in year moved to US
Moderator: Mark T Serbinski CA CPA
No, the treaty benefit is the right to use FEIE in the first place. However you must still qualify to use it.
She cannot use the bone fide test in 2013 because that must be for the full tax year (she could have used it in 2012 for you to file jointly in that year). If she does not meet PPT, she cannot use FEIE, just like a USC wouldn't be able either.
You are "stuck" using 1116 for her all her Cdn income.
She cannot use the bone fide test in 2013 because that must be for the full tax year (she could have used it in 2012 for you to file jointly in that year). If she does not meet PPT, she cannot use FEIE, just like a USC wouldn't be able either.
You are "stuck" using 1116 for her all her Cdn income.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best
If she had used it in 2012, could she use it again this year?
from http://www.irs.gov/Individuals/Internat ... dence-Test :
Bona Fide Resident For Part Of A Year
Once you have established bona fide residence in a foreign country for an uninterrupted period that includes an entire tax year, you will qualify as a bona fide resident for the period starting with the date you actually began the residence and ending with the date you abandon the foreign residence. You could qualify as a bona fide resident for an entire tax year plus parts of 1 or 2 other tax years.
Example:
You were a bona fide resident of England from March 1, 2010, through September 14, 2012. On September 15, 2012, you returned to the United States. Since you were a bona fide resident of a foreign country for all of 2011, you also qualify as a bona fide resident from March 1, 2010, through the end of 2010 and from January 1, 2012, through September 14, 2012.
Why does this not apply to her? Is it because she was not a US resident for 2012?
from http://www.irs.gov/Individuals/Internat ... dence-Test :
Bona Fide Resident For Part Of A Year
Once you have established bona fide residence in a foreign country for an uninterrupted period that includes an entire tax year, you will qualify as a bona fide resident for the period starting with the date you actually began the residence and ending with the date you abandon the foreign residence. You could qualify as a bona fide resident for an entire tax year plus parts of 1 or 2 other tax years.
Example:
You were a bona fide resident of England from March 1, 2010, through September 14, 2012. On September 15, 2012, you returned to the United States. Since you were a bona fide resident of a foreign country for all of 2011, you also qualify as a bona fide resident from March 1, 2010, through the end of 2010 and from January 1, 2012, through September 14, 2012.
Why does this not apply to her? Is it because she was not a US resident for 2012?
More like because she was never a US resident.
But, under that exception you mentioned (ggod catch), I would be filing FEIE, based on the treaty which allows Cdns to treat themselves like Americans.
Go for it.
But, under that exception you mentioned (ggod catch), I would be filing FEIE, based on the treaty which allows Cdns to treat themselves like Americans.
Go for it.
After 20 years, I am severely cutting back on responses. Do not ask specifically for my help. There are a few others on this board that can answer most questions. All the best