Hu wrote:

- quote -

Answer "A" below assumes you both are either U.S. citizens
or lawful permanent residents of the U.S. Answer "B"
assumes that you were visiting the U.S. on a temporary work
permit and upon departing the U.S. you become a dual-status
alien for the year if departure.

Answer A:
You pay taxes and complete your tax return using the same
set of rules regardless of where you reside. In other
words, the same set of tax benefits are available to you
whether you live in Paris, FR or Philadelphia, PA. You are
free to itemize deductions or to take the standard
deduction. If you relocate to a foreign country, you should
file your tax return using your foreign address. If you
also pay income tax to a foreign country on the same income
taxed by the U.S. and that foreign country is not a
sanctioned country (e.g., Cuba, Syria, No. Korea, et al.)
you may be eligible for a foreign tax credit to avoid double
taxation. See IRS Pub 54 Tax Guide for U.S. Citizens &
Residents Abroad for more information on how you are taxed
and what tax benefits are available if you have foreign
earned income. Also see Pub 514 for information on the
foreign tax credit.
http://www.irs.gov/publications/index.html

Answer B:
If you are a dual status alien, see the following link at
the IRS for information on how you are taxed in your year of
departure and what restrictions you are subject to. E.g.,
you can not take the std deduction.
http://www.irs.gov/businesses/small/...=96433,00.html

--
Alan
http://taxtopics.net

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I am planning to retire and move out of USA this coming
November. I am moving to a country with no tax
agreement/treaty with the USA. I am married and file joint
return with my wife, who does not work. I will be getting a
pension and I will be eligible for Social Security in a few
more years.

Questions:

1) I usually do not itemize my deductions. If I work until
October 31, 2004, will I be able to use the standard
deduction for both my wife and myself? If not, what do I
have to do?

2) If I change my address to a foreign country, effective
November 2004, do I have any tax break or should I keep an
address in the USA?

Thanks for your input!

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