A senior citizen living abroad permanently should use overseas address on tax return?

[Anonymous]

She used US address by mistake on FBAR 2019 as well as tax return - should we correct it ? and give overseas address?

[DaveF1006]

It depends. The FBAR instructions may be unclear on this point; but the answer to your question is that you should use your current mailing address (or at least an address where you are currently able to receive postal mail).  The reason for this is that the whole point of gathering your address data is so that the US Treasury Department will know where to reach you and contact you if you have questions.

As far as the tax season being extended, there is no official word on that yet. There is a proposal in the House Ways and Means committee but it's only a proposal. She can request an extension in Turbo Tax to file her taxes and she does not need to include a statement why. The automatic extension will allow her to wait until October 15 to file her tax return. Keep in mind, you would need to send in taxes to avoid interest on unpaid tax. An extension of time to file your return does not grant you any extension of time to pay your taxes although you wouldn't pay a late filing fee. Please review this IRS link for more information on automatic extensions.

[Anonymous]

ok thanks.

[Anonymous]

If we use US address than IRS will automatically consider April 15th as deadline and any filing after that would be considered late?

[DaveF1006]

Yes, there is a way you can tell Turbo Tax you live in a foreign country. Here is what you can do.

1. Log into Turbo Tax
2. Go to the MY INFO section in the return
3. Under Tell us the state(s) you lived in, select the drop-down that says Foreign or US Possession
4. When you enter the address, be sure to recheck US address and enter the US Address otherwise the program will expect you to enter a foreign address.

[Anonymous]

Its clear about address now.

[DaveF1006]

It depends.  After reading the entire thread, here is summary of your questions and how to will report your return

1. Since she is in the USA permanently, use the US address on the tax return and FBAR.
2. She is NOT AN EX-PAT. an ex-pat is defined by the IRS  as a taxpayer who has given up their U.S. citizenship or abandoned their green card. not the other way around. A US filed tax return is due by April 15 or Oct 15 if an automatic extension is requested.
3. The biggest issue is, if she can file as a US resident or does she need to file as a non-resident? According to the substantial presence test: To meet this test, she must be in the US.
4. 31 days during the current year(2020)  and
5. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
   • All the days you were present in the current year, and
   • 1/3 of the days you were present in the first year before the current year, and
   • 1/6 of the days you were present in the second year before the current year.
6. If she doesn't meet the above criteria, she will need to file as a US non-resident. Turbo Tax does not file US Non-resident returns, but our affiliate sprint tax does. Please select this link to sprint tax.
7. As far as the foreign income exclusion, here are the qualifications to claim.
8. 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,
9. A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
10. 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.
11. I hope this clarifies some of the questions you may have.

[Edited 03-09-2021|2:17 PM PST]

[Anonymous]

I apologize there was an error in the first post ..she has moved to India permanently

[DaveF1006]

It depends. It Tell me first if she passes the substantial presence test: To meet this test, she must be in the US. This will tell me if she qualifies to file as a resident or non-resident. When you reply back, tell me why she may qualify or not. 

1. 31 days during the current year(2020)  and
2. 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting:
   • All the days you were present in the current year, and
   • 1/3 of the days you were present in the first year before the current year, and
   • 1/6 of the days you were present in the second year before the current year.

[Anonymous]

Wrong info ..and wrong direction All US citizens have to file as resident 

[DaveF1006]

Yes, that is correct.  She will not be considered a resident for tax purposes. Sprint tax is our affiliate that handles our 1040 Non-Resident returns. Please log into their website for more information.

[Anonymous]

You said go for 1040-NR but I just found that its meant only for 

1. YOU HAVE INCOME FROM THE US

2. You were a nonresident alien ENGAGED IN A TRADE OR BUSINESS IN THE UNITED STATES during the calendar year

So she need to file 1040 as if she is a resident ? (just because she is US citizen)?

[ToddL99]

Yes, if your mother is a U.S. citizen, she must file her tax return on Form 1040.

The term "alien" refers to individuals who are NOT US citizens. Form 1040-NR is only for use by non-resident aliens (i.e. 1040-NR U.S. Nonresident Alien Income Tax Return)