On Sep 4, 11:16 pm, karotto <b...[at]theplayspace.com.au> wrote:

- quote -

No, the default is 1 year at a time, and 2 if you file papers. That
means that even after you leave the US for Australia, you still have
to file a US tax return for at least one year. Say you leave the US
on Dec 31 2005; then till Dec 31 2006 you are still a US resident and
need to file a US tax return for tax year 2006 (which is due by June
15 2007 as you are residing outside the US). The tax treaty between
the US and Australia will prevent double taxation, but if Australia's
net tax on your income is 20% and the US tax on your net income is
30%, you will owe the usual 20% to Australia and an additional 10% to
the US.

When you left the US, did you fill out form 8854 to renounce your US
residency and inform the secretary of state? If you did, then even
for tax year 2006 you don't owe any US tax. But see below.

http://www.irs.gov/pub/irs-pdf/i8854.pdf
http://www.irs.gov/pub/irs-pdf/f8854.pdf

Even if you give up your US residency, you still have to file a form
1040NR for 10 years, unless you meet certain exceptions. Under this
10 year period, you don't have to pay tax on your worldwide income.
However, it looks like profit on the sale of US stock, which would not
be subject to US tax for a normal foreigner, will be considered US
source taxable income under 1040NR. See for more info:

http://www.irs.gov/instructions/i104...1.html#d0e1006

If you gave up your US residency by default, then I have no idea what
happens. If your income and net worth are under the threshold
prescribed in the forms above, then I imagine you're OK, except for
the fact that you owe the US a tax return for 2006 in my example
above. In any case, talk to a professional versed in expatriation tax
issues, as that's beyond my realm of knowledge.

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Hi there,
If a permanent resident leaves the US, goes to Australia and then
comes back with $150000 he made in Australia he must pay income tax on
that money I believe. But what about my situation?: I have lived in
the US for years as a permanent resident, then left the country for
good, made money in Australia and now, 2 years later, I am moving back
to the states. I had to literally file all immigration papers again
(like I had to do a long time ago). So will I have to pay taxes on the
money I am bringing from Australia? One could argue that I was not a
permanent US resident (since you can only leave 6 months at a time as
permanent resident unless you file papers) when I made the money and
therefore don't need to pay taxes but one could also say that I do
have a social security number and a tax ID number in the US so I need
to pay taxes from any income although I was not a resident while I
made money.

I would very much appreciate any knowledgeable advice on the matter.
Thank you much.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >