USA Expats Tax Return and Bonafide Residence

USA Expats Tax Return and Bonafide Residence

Hi,

I need some assistance with my 2010 tax return.

I'm currently working in Afghanistan and started in January 4 of this year.

I have been working overseas since January 2004 for several different companies.

January 15, 2004 to July 2005: Armenia (United Institute)
January 5, 2006 to July 2007: Croatia (Urban Institute)
July 2007 to June 2008: Palestine (United Nations)
June 2008 to December 2010: Kosovo (RTI International)
January 4 to current: Afghanistan (AECOM)

In June, 2008, I went to Kosovo and and worked on a local government project for RTI International until December 31, 2010.

However, In June 2010, I went home in the US and stayed there until September 2010, all the while continuing to work for RTI on the Kosovo project.

In September, I left the US again and continued to work on the project for RTI. On December 15, I negotiated a new job and returned to the US to get ready to move to Afghanistan and work for another US company, AECOM.

I worked for RTI on the Kosovo project until December 31, 2010.

I filed with a bonafide residence status in 2008 and 2009.

Do you think I can continue to get a bonafide residence status in 2010?

Fred Van Antwerp

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USA Expats Tax Return and Bonafide Residence

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USA Expats Tax Return and Bonafide Residence
by: Sharon - Expats Guide

Dear Fred Van Antwerp

Thanks for your inquiry.

To provide you with a professional respond I have forwarded you inquiry to I.J. Zemelman from www.taxesforexpats.com who advised the following:

"Although you had previously filed as a bona fide resident of Kosovo, you did not pass the bona fide residency test in 2008 and 2009 from the tax code standpoint. "if you go to a foreign country for a definite, temporary purpose and return to the United States after you accomplish it, you are not a bona fide resident of the foreign country. If accomplishing the purpose requires an extended, indefinite stay, and you make your home in the foreign country, you may be a bona fide resident.

The description of your work assignment you provided, "local government project" is a clear indication of its temporary purpose. For the same reason, you do not qualify for bona fide residency in 2010.

The way to handle your expat tax return properly is to use the physical presence test. You have to request extension and file around September when you meet the requirement to stay in foreign countries (Kosovo and Afghanistan) for at least 330 days."

For further assistance contact Taxes for Expats

Best of Luck
Sharon

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