Self-employed American married to non-US citizen with two children – Back filing

Living in Australia for many years, Mrs C started her own business in 2009 but had not filed taxes with the IRS.  After discussing her situtation, I suggested she may be entitled to a tax refund from the IRS for refundable child tax credit.  Mrs C filed 6 years of FBAR forms online.  Mrs C looked into filing the returns herself, but got hung up with the self employment tax.  (The US-Australia treaty addresses this issue – there are steps to take to avoid Self Employment tax for the Australian sole proprietor).  She filed her FBAR with the US Treasury.  Filed as Head of Household for each of the tax years.  Her business was set up on Schedule C with depreciation calculated on form 4562.  We were able to E-file year 2013.  End result: she received refunds for Additional Child tax credits

American married to non-US citizen with two children – Back filing

Mrs M’s two children were born in Australia.  She has no earned income for any year since the birth of her first child in 2006.  Mrs M had contacted another tax professional who had used her Family Tax Benefit as Income.  The cost to her for drafting these erroneous tax returns was in excess of $900 when we discussed her situation.  Because she doesn’t have earned income, she has no legal requirement to file with the IRS. Client filed her FBAR with the US Treasury.  She will close the Statute of Limitations by filing a return, even with no income.

 

American married to US Green Card Holder with one child – Back filing

Mrs H arrived in Australia in 2012.  She filed Married Filing Joint with her Green Card holder spouse.  She was able to file her 2012 US tax as a part year resident for her previous State of residence, and received a full refund.   She qualified for Earned Income Tax Credit because she was a resident in the US for more than 1/2 the year.  A refund for (refundable) additional child tax credit was received by this very happy client.

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