Solved: My husband is a US resident, we live in the US right now however he maintains a part time job in a foreign entity in a country without a tax treaty with the US. He travels outside the US 150 days per
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My husband is a US resident, we live in the US right now however he maintains a part time job in a foreign entity in a country without a tax treaty with the US. He travels outside the US 150 days per

He is a citizen of that country and his income there is taxable, is he a Bona Fide resident of that country?
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My husband is a US resident, we live in the US right now however he maintains a part time job in a foreign entity in a country without a tax treaty with the US. He travels outside the US 150 days per

The Internal Service laws specifically states that to be deemed a bona fide resident, the person must either be:

  • A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, (January 1 thru December 31),
  • A U.S. resident alien who is a citizen or national of a country that has an income tax treaty in effect with the United States, and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
  • A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

It appears that your husband cannot claim the Foreign Income Exclusion based on the statement that you have provided. However, he may be able to claim the Foreign Tax Credit if the following requirements are met:

  • The foreign tax must be imposed on him.
  • You must have paid or accrued the tax.
  • The tax must be the legal and actual foreign tax liability.
  • The tax must be an income tax (or a tax in lieu of an income tax)

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My husband is a US resident, we live in the US right now however he maintains a part time job in a foreign entity in a country without a tax treaty with the US. He travels outside the US 150 days per

The Internal Service laws specifically states that to be deemed a bona fide resident, the person must either be:

  • A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, (January 1 thru December 31),
  • A U.S. resident alien who is a citizen or national of a country that has an income tax treaty in effect with the United States, and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
  • A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

It appears that your husband cannot claim the Foreign Income Exclusion based on the statement that you have provided. However, he may be able to claim the Foreign Tax Credit if the following requirements are met:

  • The foreign tax must be imposed on him.
  • You must have paid or accrued the tax.
  • The tax must be the legal and actual foreign tax liability.
  • The tax must be an income tax (or a tax in lieu of an income tax)

View solution in original post

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