Expatriate Taxes >> Form 2350 Extension Request?

Hi there,

I'm an expat who arrived overseas at the end of September 2007. I'm planning to file form 2350 to request an extension to file my taxes, in the hopes that I will be granted the extension and can qualify for the physical presence test (330 days in foreign country) before end of September 2008. I'm thinking of requesting the extension until October 15, 2008 - the date of the standard 6 month extension to file. My questions are the following:

(i) If granted the extension, my understanding is that I will qualify in 2007 for the foreign income exclusion (f2555), despite the fact that most of the 330 day period is in 2008. Is this correct?

(ii) What are my chances of being granted the extension via form 2350? Anybody out there ever received this extension for this reason?

Thanks for any and all answers!

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1. Yes, that's how it works.

2. Should not be a problem as long as this is your first year claming the FEIE for this stretch outside the US.

Bear in mind that any taxes due must be paid by April 15th. Neither the automatic 60 day extension to file for overseas residents nor the Form 2350 extension extend the due date for payment of the taxes due, if any.

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FWIW, in tax speak, you are NOT an expat. An expat is someone who stops paying US taxes because they have given up their citizenship.

Be very careful and calculate your 2007 tax bill and pay it by 4/15. You only have 3 months in 2007 that will be covered by the 2555. so this will exclude $22000 of income and this will absorb your 10% tax bracket and part of your 15% tax bracket. Any remaining tax is taxed at the higher rates.

Alternately, file as usual, pay the tax and amend if you don't make it to August. A refund later is much nicer and cheaper than penalty and interest.

Expatriate Taxes >> Form 2350 Extension Request?

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