# Back taxes - US and Australia



## GETMEOUT (Jan 18, 2014)

Can someone please help me? I have just read something that is totally stressing me out.

I am a dual US/Australian citizen.

I moved to oz in 1997. Became a citizen in 2000. Have not been back to the US since pre 2000, not even stepped foot in the country.

I have been duly paying my Australian tax every year. I have not filed my us taxes for many years, maybe 12.

I earned approx $75,000 Australian in interest from a non bank. An individual. No "earned" income.

I am going to expatriate as soon as I can because of what they are moving towards. 

I am going to go through the streamlined method and then get caught up the 5 years and renounce.

Someone on a different thread pointed me to Pub 54.

My reading of this is that I have to pay tax first in the US, then I can claim that back on my Australian tax return. I have already paid the Australian government what I owe AND it would be more than what I would have owed in US federal taxes.

Is my reading correct? Do I now have to file my past three years with the US government, pay then their whack of money and then try to claim it back from the Australian government?

I am worried because this will put me over the $1500 owed question on the 20 part questionaire for the streamlining process, which may set me up for an audit.

It will also mean thousands in accountants bills.


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## Bevdeforges (Nov 16, 2007)

If you're going to be back filing, then you don't have to pay the US and then claim back what you paid in Australia. Given that you've paid the taxes in Australia already for your prior years, just fill out the forms and claim your Australian income tax against what you owe using the Foreign Tax Credit (FTC) on form 1116. You should wind up owing nothing, or very little.
Cheers,
Bev


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