# Dual citizen filing US taxes from Oz



## kristyandru (May 4, 2013)

I have been living in Australia for 11 years. I have filed US taxes on the years I felt I would have owed tax BUT I haven't been declaring my Aussie income (on which I have paid Aussie taxes) on my US taxes. I only have dividend income from securities and a retirement account in the US. Everything else is in Australia and subject to their taxes. I also have to declare my US dividends, etc. on Aussie tax which increases my taxes!! It's a lose/lose situation any way I look at it. Anyway, now that this amnesty thing has come up...do you think I could just file my Australian income for the last 3 years as an addition to the taxes I filed? I guess I have to file the FBAR thing for savings accts too. I would HOPE I don't owe any taxes on any of it since I've already paid the Aussies!
Also, I never 'declared' my expat status to the US but I saw something about filing for exemption from filing US taxes for expats who don't want to renounce their US citizenship. Anyone know anything about that?


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## Bevdeforges (Nov 16, 2007)

For your US taxes, you're supposed to be declaring your worldwide income - but as you said, there is a exclusion for salary income earned while resident overseas (i.e. outside the US). Exemption, deduction, exclusion - these are all technical tax terms and have to be treated differently. In order to "exclude" your foreign salary income, you need to file a form 2555 with your tax return, but it does mean that you will not have to pay tax on your Aussie salary.

In your situation, I would just file the current year plus three years back and be done with it. Take a look at Publication 54 on the IRS website Forms & Pubs for the details on how to claim your exclusion and other information on filing from overseas.

The FBAR is a separate form and doesn't generate any tax obligation. It's simply a disclosure document.

I wouldn't worry too much about an "amnesty" unless you have income over and above the exclusion or large and elaborate investments you've been keeping from the IRS. Chances are, you probably don't owe much (if any) tax on the last three years - and filing those will simply get you caught up and ready to go forward in good conscience.
Cheers,
Bev


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## kristyandru (May 4, 2013)

Thanks for that. I actually have filed US tax returns but I only filed on US income. I was wondering if I could include, with the current year, just the forms for foreign income for 3 years or do I have to file the whole tax form with the foreign income added for the 3 years?


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## Bevdeforges (Nov 16, 2007)

For any years you have already filed, you will have to file a 1040X to amend your original filing. Otherwise, they won't accept it.
Cheers,
Bev


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