Tax Issues for U.S. Residents and Foreign Nationals

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Subject:		Re: Returning to the USA
Name:		Gary W. Carter
Date Posted:		May 15, 08 - 5:41 PM
Email:		gwc@thetaxguy.com
Message:		Hi Jonathan - As a US citizen, you are subject to report your worldwide income on your US tax return. You can also claim worldwide losses. You are not required to file a federal tax return unless you have gross income that exceeds your personal exemption and the standard deduction. Additionally, living overseas, you can take advantage of the foreign earned income exclusion and the foreign tax credit. However, you must file a return to report losses that can be carried forward to offset future income. Therefore, to answer your questions: 1) You should file a return for previous years in which you incurred losses. 2) For 2007 you must file as an individual. Your business income and deductions are reported on Schedule C filed with your individual return.

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