I am a US citizen who recently returned from five years abroad working for a non-profit international environmental organization in the DR. During my five years abroad, I elected to claim the Foreign Earned Income exemption on my income, and therefore did not pay federal income taxes during that time.
I have since returned to the US, where I continue to work with the same organization. I obviously cannot claim the exemption this tax year (2007) because I have been living in the country for the last 18 months, but I do plan on working abroad again within the next two years, during which I hope to qualify and re-claim the Foreign Earned Income exemption.
Therefore, my questions are this:
1. Do I have to officially ?revoke? my exemption this year, the first in which I will be paying income tax as a US resident in five years, or can I simply file my taxes (without the exemption and a revocation letter) as any other normal US resident?
2. If I do have to officially revoke my Foreign Earned Income exemption, do I really have to wait five years before I claim it again (even if I begin working abroad again in two years)? Why?
3. If I do have to wait five years, how difficult is it the have the IRS reinstate the exemption status prior to the end of that five year period?
In a nutshell?I want to pay my income taxes this year, but I don?t want to lose the opportunity to earn exempt income if I do return to the DR to work again in the next five years.
HELP! I realize it's a lot of questions, but any one with a similar experience and/or advice is greatly appreciated!
I have since returned to the US, where I continue to work with the same organization. I obviously cannot claim the exemption this tax year (2007) because I have been living in the country for the last 18 months, but I do plan on working abroad again within the next two years, during which I hope to qualify and re-claim the Foreign Earned Income exemption.
Therefore, my questions are this:
1. Do I have to officially ?revoke? my exemption this year, the first in which I will be paying income tax as a US resident in five years, or can I simply file my taxes (without the exemption and a revocation letter) as any other normal US resident?
2. If I do have to officially revoke my Foreign Earned Income exemption, do I really have to wait five years before I claim it again (even if I begin working abroad again in two years)? Why?
3. If I do have to wait five years, how difficult is it the have the IRS reinstate the exemption status prior to the end of that five year period?
In a nutshell?I want to pay my income taxes this year, but I don?t want to lose the opportunity to earn exempt income if I do return to the DR to work again in the next five years.
HELP! I realize it's a lot of questions, but any one with a similar experience and/or advice is greatly appreciated!