Financial Advice?

[girlx]

Can someone recommend a financial advisor I can speak to who might be able to help me decide whether taking a 3 month (lucrative) contract onsite in the States is worth doing or not? Normally I qualify for the Foreign Earned income credit via the Physical Presence test... but if I go back for more than 35 days, I will lose that credit for this year and then ALL of my income this year will be fully taxable by the US, right? Seems not worth going home ever again in that case! Anyway, tips?

[girlx]

hrmm no one a tax expert? if i have lived in thailand for 5 years and i am only going back to the states for 3 months to work, i am wondering if i can still claim the Foreign Earned Income credit based on the Bona Fide Residence test... would i need to be on a particular visa for that? or does the fact that i have had a signed lease/home office here for years speak for itself?

[AlexLah]

Neh, me no tax expert as I don't pay tax.

Here all ya need to know, I think.

http://www.irs.gov/publications/p54/ch04.html

[girlx]

yeah i've read it but i need someone to interpret it a bit

[dotcom]

Can't you claim bona fide resident status?

If yes you merely pay normal income tax on your USA earnings. After all as you've said it a temporary posting.

The physical presence test is a bad way to go - in my experience. It's fine for the first year. (partial year). What visa are you on?

I know I haven't answered all your questions - just giving you something to think about.

[girlx]

Can't you claim bona fide resident status?

i'm not sure- that's my question! i don't really understand what qualifies someone to be that!?

[AlexLah]

As far as I understand you only have to pay tax on the money you earn when working in the US.

You can prove you live in Thailand and most likely are under the limit for paying tax (87000).

If you do make more then that please tell me as I want to do the same job as you do, ha ha .

[dotcom]

Can't you claim bona fide resident status?

i'm not sure- that's my question! i don't really understand what qualifies someone to be that!?

I already asked you : What visa are you on?

After you answer that maybe we can help.

[PeaceBlondie]

I am not an expert on this, but when I did ask an expert, he said use the bona fide residence test if you in fact live here for most of the year, more or less permanently

[girlx]

I already asked you : What visa are you on?

is that what makes the difference? i am on a tourist visa, as no other visa applies to my situation.

[Carmine6]

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 are a bona fide resident of that country for the period starting with the date you actually began the residence and ending with the date you abandon the foreign residence. Your period of bona fide residence can include an entire tax year plus parts of 2 other tax years.

Example.

You were a bona fide resident of Singapore from March 1, 2006, through September 14, 2008. On September 15, 2008, you returned to the United States. Since you were a bona fide resident of a foreign country for all of 2007, you were also a bona fide resident of a foreign country from March 1, 2006, through the end of 2006 and from January 1, 2008 through September 14, 2008.

This doesn't completely answer your question, but at least through the point you arrive back in the US, the income can fall under the exclusion. But there's the question of any income in Thailand after you leave the US and go back to Thailand. If you can make the case that you did not abandon the foreign residence and are still a bona fide resident of Thailand, all the non-US revenue should fall under the exclusion.

Or if all your income in Thailand happened before and none after, no issues.

[OriginalPoster]

I already asked you : What visa are you on?

is that what makes the difference? i am on a tourist visa, as no other visa applies to my situation.

That's an interesting question that you're raising. I seem to recall that one of the requirement of being a "bonefide resident" of a foreign county is that you have not made any statements to the foreign country indicating that you are not a resident there. Have you been paying Thai income taxes? If yes, then it might reinforce the claim to have been a bonefide resident (though actually the rules are quite explict in saying that it's not required that you pay taxes in order to claim the Foreign Income Exclusion).

[CaptHaddock]

I already asked you : What visa are you on?

is that what makes the difference? i am on a tourist visa, as no other visa applies to my situation.

How could you possibly be a bona-fide resident on a tourist visa?