percent of the exclusion amount (computed on atax on your nonexcluded income using the taxdays in 2008 (
of 120), and 20 days in 2007 (
rates that would have applied had you notof 120). Because the total for the 3-year period isdaily basis), multiplied by the number of days inclaimed the exclusions. See the instructions for180 days, you are not considered a residentyour qualifying period that fall within your 2009Form 1040 and complete the
under the substantial presence test for 2009.tax year. For 2009, this amount is $40.07 per
Income Tax Worksheet
to figure the amount ofFor more information on resident and non-day ($14,624 per year). See
tax to enter on Form 1040, line 44. If you mustresident status, the tests for residence, and theunder
Foreign Housing Exclusion and Deduc-
attach Form 6251 to your return, use the
exceptions to them, see Publication 519, U.S.
in chapter 4.
Earned Income Tax Worksheet
provided in theTax Guide for Aliens.
Housing expenses—maximum amount.
instructions for Form 6251.
Chapter 1 contains gen-The amount of qualified housing expenses eligi-eral filing information, such as:
Photographs of missing children.
The Inter-ble for the housing exclusion and housing de-nal Revenue Service is a proud partner with theduction has changed for some locations. See
Whether you must file a U.S. tax return,National Center for Missing and Exploited Chil-
Limit on housing expenses
When and where to file your return,dren. Photographs of missing children selected
ing Exclusion and Deduction
in chapter 4.by the Center may appear in this publication on
How to report your income if it is paid in
Generally, the amountpages that would otherwise be blank. You canforeign currency,of income you can receive before you must filehelp bring these children home by looking at the
How to treat a nonresident alien spousean income tax return has increased. Thesephotographs and calling 1-800-THE-LOSTas a U.S. resident, andamounts are shown in chapter 1 under
(1-800-843-5678) if you recognize a child.
Whether you must pay estimated tax.
Maximum self-employment tax.
For 2009,the maximum amount of net earnings from
Chapter 2 discusses the
self-employment that is subject to the socialwithholding of income, social security, and Medi-security part of the self-employment tax hascare taxes from the pay of U.S. citizens andThis publication discusses special tax rules forincreased to $106,800. All net earnings are sub-resident aliens.U.S. citizens and resident aliens who work ject to the Medicare part of the tax. For moreabroad or who have income earned in foreign
Chapter 3 discussesinformation, see chapter 3.countries.who must pay self-employment tax.If you are a U.S. citizen or resident alien,
Making work pay credit.
If you have earned
Foreign earned income exclusion and hous-
your worldwide income generally is subject toincome from work, you may be able to take this
ing exclusion and deduction.
Chapter 4 dis-U.S. income tax, regardless of where you arecredit. It is 6.2% of your earned income butcusses income tax benefits that apply if youliving. Also, you are subject to the same incomecannot be more than $400 ($800 if married filingmeet certain requirements while living abroad.tax filing requirements that apply to U.S. citizens jointly). See the Instructions for Form 1040 orYou may qualify to treat up to $91,400 of youror resident aliens living in the United States.the Instructions for Form 1040A.income as not taxable by the United States. YouExpatriation tax provisions apply to U.S. citizensmay also be able to either deduct part of yourwho have renounced their citizenship and
Government retiree credit.
You may be ablehousing expenses from your income or treat along-term residents who have ended their resi-to take this credit if you get a government pen-limited amount of income used for housing ex-dency. These provisions are discussed in chap-sion or annuity, but it reduces any making workpenses as not taxable by the United States.ter 4 of Publication 519.pay credit. See the Instructions for Form 1040 orThese benefits are called the foreign earnedthe Instructions for Form 1040A.income exclusion and the foreign housing de-
A resident alien is an individ-duction and exclusion.ual who is not a citizen or national of the United
IRA deduction expanded.
You may be ableTo qualify for either of the exclusions or theStates and who meets either the green card testto take an IRA deduction if you were covered bydeduction, you must have a tax home in a for-or the substantial presence test for the calendara retirement plan and your 2009 modified ad-eign country and earn income from personalyear. justed gross income (AGI) is less than $65,000services performed in a foreign country. These($109,000 if married filing jointly or qualifying1.
Green card test.
You are a U.S. residentrules are explained in chapter 4.widow(er)). If your spouse was covered by aif you were a lawful permanent resident ofIf you are going to exclude or deduct yourretirement plan, but you were not, you may bethe United States at any time during theincome as discussed above, you must file Formable to take an IRA deduction if your 2009 modi-calendar year. This is known as the green2555, Foreign Earned Income, or Formfied AGI is less than $176,000. See the Instruc-card test because resident aliens hold im-2555-EZ, Foreign Earned Income Exclusion.tions for Form 1040 or the Instructions for Formmigrant visas (also known as green card).You will find an example with filled-in Forms1040A for details and exceptions.2555 and 2555-EZ in chapter 4.2.
Substantial presence test.
You are con-
Limit on exclusion of gain on sale of main
sidered a U.S. resident if you meet the
Exemptions, deductions, and credits.home.
Generally, gain from the sale of yoursubstantial presence test for the calendarChapter 5 discusses exemptions, deductions,main home is no longer excludable from incomeyear. To meet this test, you must be physi-and credits you may be able to claim on yourif it is allocable to periods after 2008 whencally present in the United States on atreturn. These are generally the same as if youneither you nor your spouse (or your formerleast:were living in the United States. However, if youspouse) used the property as a main home. Seechoose to exclude foreign earned income ora.31 days during the current calendarPub. 523.housing amounts, you cannot deduct or excludeyear, andany item or take a credit for any item that isb.A total of 183 days during the currentrelated to the amounts you exclude. Among theyear and the 2 preceding years, count-topics discussed in chapter 5 are:
ing all the days of physical presence in
Exemptions,the current year, but only
the numberof days of presence in the first preced-
Contributions to foreign organizations,
Change of address.
If you change your mail-ing year, and only
the number ofing address, be sure to notify the Internal Reve-
Foreign moving expenses,days in the second preceding year.nue Service using Form 8822, Change of
Contributions to individual retirement ar-Address. If you are changing both your homerangements (IRAs), andand business addresses, you need to complete
You were physically present intwo forms.
Foreign taxes.the United States on 120 days in each of the
Figuring tax on income not excluded.
If youyears 2007, 2008, and 2009. To determine if youclaim the foreign earned income exclusion, themeet the substantial presence test for 2009,
Tax treaty benefits.
Chapter 6 discusseshousing exclusion, or both, you must figure thecount the full 120 days of presence in 2009, 40some benefits that are common to most taxPage 2