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N 470 and Foreign Earned Income Exclusion

Discussion in 'Individuals' started by alfares5000, Sep 12, 2013.

  1. alfares5000

    alfares5000 Junior Member

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    Hi there,

    My N 470 application was approved on 25 September 2011 (N 472 notice). Can I benefit from Foreign Earned Income Exclusion without risking my legal residence status and ultimately my Naturalization plan? If yes what article in the Law state so?

    According to my CPA, I can file as “resident living abroad”. However, I am still hesitant because:

    1- I am not sure if the definition of “resident living abroad” exists for income tax purposes or not? (I haven’t seen any close in the Law or IRS to prove this definition)

    2- Even if this definition exists and I chose to use it, then my tax exemption would be based on my absence from USA. Then in this case I assume that I still have to provide acceptable evidence (either at the port of entry or when I file for Naturalization) establishing that I did not abandon my residence and did not violate my lawful permanent residence status during this absence from USA.

    3- Based on my N 470 approval, I have been a way from USA (working with United Nation) since November 2011. In other words I do not want to have problem based on this absence. Although I believe I have a strong evidence that I did not abandon my legal residence such as preserving my permanent domicile in USA, living/having close relatives (I live with my brother and his family - all US citizens); I have a bank account, credit card and make regular payments, driver's license and transfer funds to my bank account in the United States etc. But I do not wish to place my self in a position were I need to use any of this evidence

    Is this conclusion correct? Please advice as there is no black or white answerer.

    Best regards,
     
  2. Ron Gotcher

    Ron Gotcher Attorney at Law

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    Normally, filing as a resident living abroad would doom a naturalization application. In this case, however, since you have an approved N-470 you shouldn't have any issues.
     
  3. MhaeO

    MhaeO Junior Member

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    Residing abroad somehow a hard situation especially when it comes to necessary papers you need. However, of course there is a benefits relocating in other place. When it comes to credit card issue, in some countries there are credit card Company who offered low interest rate and you can be sure that you had a secure credit card. Source: MatchFinancial.com.
     

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