Publication 54 - Tax Guide For U.s. Citizens And Resident Aliens Abord - 2011 Page 2
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44Limit on exclusion of gain on sale of main
percent of the exclusion amount (computed on a
of 120). Because the total for the 3-year period is
home. Generally, gain from the sale of your
daily basis), multiplied by the number of days in
180 days, you are not considered a resident
main home is not excludable from income if it is
under the substantial presence test for 2011.
your qualifying period that fall within your 2011
allocable to periods after 2008 when neither you
For more information on resident and non-
tax year. For 2011, this amount is $40.72 per
nor your spouse (or your former spouse) used
resident status, the tests for residence, and the
day ($14,864 per year). See
Housing Amount
the property as a main home. See Publication
exceptions to them, see Publication 519.
under Foreign Housing Exclusion and Deduc-
523, Selling Your Home.
tion in chapter 4.
Filing information.
Chapter 1
contains gen-
eral filing information, such as:
Photographs of missing children. The Inter-
Housing expenses — maximum amount.
nal Revenue Service is a proud partner with the
•
The amount of qualified housing expenses eligi-
Whether you must file a U.S. tax return,
National Center for Missing and Exploited Chil-
ble for the housing exclusion and housing de-
•
When and where to file your return,
dren. Photographs of missing children selected
duction has changed for some locations. See
by the Center may appear in this publication on
•
Limit on housing expenses
under Foreign Hous-
How to report your income if it is paid in
pages that would otherwise be blank. You can
ing Exclusion and Deduction in chapter 4.
foreign currency,
help bring these children home by looking at the
•
How to treat a nonresident alien spouse
photographs and calling 1-800-THE-LOST
Filing requirements. Generally, the amount
as a U.S. resident, and
(1-800-843-5678) if you recognize a child.
of income you can receive before you must file
•
an income tax return has increased. These
Whether you must pay estimated tax.
amounts are shown in chapter 1 under Filing
Requirements.
Introduction
Withholding tax.
Chapter 2
discusses the
withholding of income, social security, and Medi-
Self-employment tax reduced. For 2011, the
care taxes from the pay of U.S. citizens and
This publication discusses special tax rules for
rate of self-employment tax has been reduced
resident aliens.
U.S. citizens and resident aliens who work
from 15.3% to 13.3%. The maximum amount of
abroad or who have income earned in foreign
net earnings from self-employment that is sub-
Self-employment tax.
Chapter 3
discusses
countries.
ject to the social security part of the
who must pay self-employment tax.
If you are a U.S. citizen or resident alien,
self-employment tax remains at $106,800. All
Foreign earned income exclusion and hous-
your worldwide income generally is subject to
net earnings are subject to the Medicare part of
ing exclusion and deduction.
Chapter 4
dis-
U.S. income tax, regardless of where you are
the tax. For more information, see chapter 3.
cusses income tax benefits that apply if you
living. Also, you are subject to the same income
IRA deduction expanded. You may be able
meet certain requirements while living abroad.
tax filing requirements that apply to U.S. citizens
You may qualify to treat up to $92,900 of your
to take an IRA deduction if you were covered by
or resident aliens living in the United States.
income as not taxable by the United States. You
a retirement plan and your 2011 modified ad-
Expatriation tax provisions apply to U.S. citizens
also may be able to either deduct part of your
justed gross income (AGI) is less than $66,000
who have renounced their citizenship and
housing expenses from your income or treat a
($110,000 if married filing jointly or a qualifying
long-term residents who have ended their resi-
limited amount of income used for housing ex-
widow(er)). If your spouse was covered by a
dency. These provisions are discussed in chap-
penses as not taxable by the United States.
retirement plan, but you were not, you may be
ter 4 of Publication 519, U.S. Tax Guide for
These benefits are called the foreign earned
able to take an IRA deduction if your 2011 modi-
Aliens.
income exclusion and the foreign housing de-
fied AGI is less than $179,000. See the Instruc-
duction and exclusion.
Resident alien. A resident alien is an individ-
tions for Form 1040 or the Instructions for Form
To qualify for either of the exclusions or the
ual who is not a citizen or national of the United
1040A for details and exceptions.
deduction, you must have a tax home in a for-
States and who meets either the green card test
Form 8938. If you had foreign financial assets
eign country and earn income from personal
or the substantial presence test for the calendar
in 2011, you may have to file new Form 8938
year.
services performed in a foreign country. These
with your return. See Form 8938 in chapter 1.
rules are explained in chapter 4.
1. Green card test. You are a U.S. resident
If you are going to exclude or deduct your
Change of address. If you change your home
if you were a lawful permanent resident of
income as discussed above, you must file Form
mailing address, notify the Internal Revenue
the United States at any time during the
2555, Foreign Earned Income, or Form
Service using Form 8822, Change of Address. If
calendar year. This is known as the green
2555-EZ, Foreign Earned Income Exclusion.
card test because resident aliens hold im-
you are changing your business address, use
You will find an example with filled-in Forms
migrant visas (also known as green cards).
Form 8822-B, Change of Address — Business.
2555 and 2555-EZ in chapter 4.
2. Substantial presence test. You are con-
Future developments. The IRS has created
Exemptions, deductions, and credits.
sidered a U.S. resident if you meet the
Chapter 5
discusses exemptions, deductions,
a page on IRS.gov for information about Publi-
substantial presence test for the calendar
and credits you may be able to claim on your
cation 54 at Information
year. To meet this test, you must be physi-
return. These are generally the same as if you
about any future developments affecting Publi-
cally present in the United States on at
were living in the United States. However, if you
cation 54 (such as legislation enacted after we
least:
choose to exclude foreign earned income or
release it) will be posted on that page.
housing amounts, you cannot deduct or exclude
a. 31 days during the current calendar
any item or take a credit for any item that is
year, and
related to the amounts you exclude. Among the
Reminders
b. A total of 183 days during the current
topics discussed in chapter 5 are:
year and the 2 preceding years, count-
•
Exemptions,
ing all the days of physical presence in
Figuring tax on income not excluded. If you
•
the current year, but only
/
the number
Contributions to foreign organizations,
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claim the foreign earned income exclusion, the
of days of presence in the first preced-
•
Foreign moving expenses,
housing exclusion, or both, you must figure the
ing year, and only
/
the number of
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6
•
tax on your nonexcluded income using the tax
days in the second preceding year.
Contributions to individual retirement ar-
rates that would have applied had you not
rangements (IRAs), and
claimed the exclusions. See the Instructions for
•
Foreign taxes.
Form 1040 and complete the Foreign Earned
Example. You were physically present in
Income Tax Worksheet to figure the amount of
the United States on 120 days in each of the
tax to enter on Form 1040, line 44. If you must
years 2009, 2010, and 2011. To determine if you
Tax treaty benefits.
Chapter 6
discusses
attach Form 6251 to your return, use the Foreign
meet the substantial presence test for 2011,
some benefits that are common to most tax
Earned Income Tax Worksheet provided in the
count the full 120 days of presence in 2011, 40
treaties and explains how to get help if you think
Instructions for Form 6251.
days in 2010 (
/
of 120), and 20 days in 2009 (
/
you are not receiving a treaty benefit to which
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Publication 54 (2011)
Page 2
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