FAQ
- I would like to use your service. How can I start?
- Can I e-file?
- Can I exclude a foreign earned income from my total income?
- I have interest and dividend income. Can I still exclude them from my total income?
- How much foreign earned income can I exclude?
- Can I take a housing exclusion?
- What are allowable expenses for a housing exclusion?
- My spouse is not a US citizen and does not have a social security card. Can I claim him/her?
- In 2006 my tax increased significantly compared to those previous years. Why?
- I have not filed for several years. What should I do?
- I cannot collect all the documents to be ready by the tax filing due date of April 15th. What can I do?
- I may not meet the bona fide residence test or the physical presence test. How should I do?
- Where do I mail my return?
- Can I ask you more specific questions?
I would like to use your service. How can I start?
Contact us by email (hisa@maxrefundtax.com) or fax (1+503-393-2141). We will respond you in 2 business days. Please go to the page How it works for simple step-by-step instructions.
Can I e-file?
In most cases, yes. However, if you are filing with a foreign address, you cannot e-file your tax return.
Can I exclude a foreign earned income from my total income?
If you are a U.S. citizen or permanent resident (greencard holder) claiming the country you live as a tax home, and meet either the bona fide residence test or the physical presence test, then you can exclude your foreign earned income.
I have interest and dividend income. Can I still exclude them from my total income?
No, you cannot exclude them.
You cannot exclude interest, dividends, pensions, annuities, or amounts attributable to certain employee trusts.
How much foreign earned income can I exclude?
You can exclude up to $85,700 this year (2007) from your foreign earned income. To do so you need to file Form 2555 to figure the amount on Part VI of page 3 of the form and the exclusion amount will be shown at Line 21 of your Form 1040.
Can I take a housing exclusion?
If you have allowable expenses, you may then qualify to take a housing exclusion. File Form 2555 and figure the amount on Part VII of page 3. This amount will be shown at Line 36 of Form 1040.
What are allowable expenses for a housing exclusion?
They are:
- Rent
- Utilities other than telephone
- Repairs
- Furniture rental
- Residential parking fee
- Non-refundable security deposits or lease payment
- Fair rental value of housing provided by your employer
- Real property and personal property insurance
My spouse is not a US citizen and does not have a social security card. Can I claim him/her?
Your spouse needs to apply for the ITIN (individual taxpayer identification number) in order to file tax with you.
You can find the information how to apply ITIN here.
If your spouse already has an ITIN, you can file your return with the filing status Married Filing Jointly (MFJ). This is beneficial for a taxpayer with a non-working spouse because your tax rate is lower when filing as MFJ than a single or head of household.
Please note, that your spouse is never your dependent even if he/she has no income at all.
In 2006 my tax increased significantly compared to those previous years. Why?
U.S. citizens or residents living abroad have been allowed to exclude certain foreign earned income and housing costs from taxable income, regardless of whether any foreign tax is paid on these amounts under IRC section 911.
However the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA) changed some of the rules.If an individual uses the foreign earned income or housing exclusion, any income in excess of the amount excluded is
taxed (under the regular and alternative minimum tax) using the rates that would have been applied had the exclusion not been elected.
I have not filed for several years. What should I do?
You need to catch up to file your returns. We are here to help you. Collect all the information and start filing from the most recent year's tax return.
If you do not file a tax return for any year, the statute of limitations for collections of taxes for those years never expires. This means the IRS can show up 10 or more years from now and legally assess taxes for all the prior years in which you failed to file tax returns.
If you do file a tax return, the statute of limitations expires 3 years after the date it is filed.
As you already must have read our first page of this site, there are other reasons that you should file. If you have a child younger than 17 years old you may also be qualified an Additional Child Tax Credit to receive a tax refund!
If your child goes to college in the US, to seek a student loan you also have to submit a FAFSA application which requires that you must file an income tax return.
The U.S. federal government's Economic Stimulus Package entitles you to receive a refund of $600 (single) or $1,200 (married couple) plus an additional $300 for each child. In order to receive it, you must file your 2007 tax return.
I cannot collect all the documents to be ready by the tax filing due date of April 15th. What can I do?
As a tax payer living overseas, your tax due date is automatically extended two months to June 15th. If you still need additional time for your return, you can file Form 4868 and mail it to the IRS where you will file your return.
Please be aware that an extension of time to file is NOT an extension of time to pay. If you owe, to avoid the interest and penalty, you may want to pay by April 15th.
I may not meet the bona fide residence test or the physical presence test. How should I do?
You can file Form 2350 - Application for Extension of Time to File US Income Tax Return.
Where do I mail my return?
If you live overseas, the address is:
Department of the Treasury
Internal Revenue Service Center
Austin, TX 73301-0215
USA
Can I ask you more specific questions?
Please email us at hisa@maxrefundtax.com. We will respond to you within 2 business days.