# Tax Returns for the Renunciaion Year



## gerald747 (Oct 24, 2012)

I understand that, according to IRS guidelines, you need to file the following forms for the year of expatriation:
--Form 1040, the standard tax form, with your global income in the period from January 1 until the day before your renunciation
--Form 1040NR, the non-resident form, with your U.S.-source income in the period from the day of your renunciation until December 31

If renunciation is done at the end of January, 2013, that would mean that my wife and I will have to file a 1040 (presumably jointly) for the month of January and a 1040NR for the months of February through December.

Can both of these forms, in particular the 1040 (covering just January), be filed after the end of 2013?

On the 1040, can we claim the full amount of the Standard Deduction and the Personal Exemptions even though it only covered one month?

Can the 1040NR be file jointly or must it be filed individually?


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## Pacifica (Oct 19, 2011)

gerald747 said:


> Can both of these forms, in particular the 1040 (covering just January), be filed after the end of 2013?


You final returns are due by June 15th of the year following expatriation. So, if you renounce any time in 2013, your final returns are due by June 15th of 2014. You definitely can file after the end of 2013. I don't think the 2013 tax forms would even be available until close to the end of 2013.

Sorry, I don't know the answer to your other two questions.


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## RødGrød (Oct 8, 2011)

Good questions. I have some similar ones. I renounced at the beginning of February 2012. So I only have to file a 1040 for January. 
1) Can I take the FEIE for my January income or
2) Can I use foreign tax credits or
3) Can I use the standard deduction/personal exemptions for just the one month?


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## Bevdeforges (Nov 16, 2007)

RødGrød said:


> Good questions. I have some similar ones. I renounced at the beginning of February 2012. So I only have to file a 1040 for January.
> 1) Can I take the FEIE for my January income or


Sure - with a limit of 1/12 of the limit for the one month period of time.



> 2) Can I use foreign tax credits or


Sure - limited to the income tax you paid on that amount of income to whatever other jurisdiction. (If you paid income tax on your whole salary for the year, then 1/12 of that amount.)



> 3) Can I use the standard deduction/personal exemptions for just the one month?


Sure - either 1/12 the standard deduction - or your actual deductions that apply to that one month. 
Cheers,
Bev


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## gerald747 (Oct 24, 2012)

According to this:
Tax Topics - Topic 551 Standard Deduction
standard deduction can NOT be taken.

"Certain taxpayers are not entitled to the standard deduction. They are: 
...
An individual who was a nonresident alien or dual status alien during any part of the year"


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## Edelweiss (Nov 3, 2012)

*Final tax filing*

I haven't renounced. I'm still investigating it. It is possible I could be a covered expatriate.

1. I understand that the entirety of my US IRA, US rollover 401-K and UK company sponsored defined contribution plan will be deemed to have been distributed to me in the year I expatriate. Can prior year foreign tax carryforwards be used to offset this specific type of "income"?

2. I understand that all of my investments will be deemed to have been sold the day before expatriation. Many of these are PFICs. Is the deemed sale just for the purposes of determining if you exceed the exclusion on the "exit" tax or are they also treated as having been "sold" for the purposes of the final tax return?


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## Bevdeforges (Nov 16, 2007)

When in doubt, go to one end or the other of the horse: Expatriation Tax

You'll note that there is an exclusion amount you apply against the "deemed sale" proceeds.
Cheers,
Bev


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