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    Worker overseas with some questions

    Hi All,

    Hope holidays are going well thus far for all.

    A question regarding a client just picked up, and since I am a little under the weather, need some clarification.

    The question: client and family immigrates from Afghanistan - around April 2010. Started work in Afghanistan for some sort of non-profit, relief agency, based out of Afghanistan as a manager. He came to me for help regarding filing of his 2011 return with a foreign US dollar income of $12,000. It appears that he spends about 2 months back in US with family and then works in Afghanistan for the rest of time. I will be telling him that he has no filing requirement for MFJ and 4 kids with this income level. He also appears to receive some support from community services, I believe.

    I am presuming that he wants to apply for EIC, but I do not think that his kids may be EIC eligible. I am finding out though. Two kids are 19 and over - part time "adult school" students and not sure about the 17 and 12 year old, whether they are legitimate students or not at this point.

    Main thing for my concern is the filing requirement - less than $19,000 anyway; tax home in Afghanistan in relation to family residing here in California; and the adherence to the EIC rules if qualified. I know the rules for EIC but want to be sure about overseas money, tax home and the EIC implications if there are any issues I am not thinking of. I just want to know if I am missing something or if anyone can tell me of something I need to watch for.

    Thanks.

    rfk

    #2
    Questions

    Is the client a US citizen?
    Is he a resident alien?
    Are his children Us citizens or resident aliens?
    Was his home in the US for more than 6 months and were his children here for more than 6 months?

    Comment


      #3
      For Kram Questions

      Kram:

      Is the client a US citizen? - No
      Is he a resident alien? - Yes
      Are his children Us citizens or resident aliens? - I believe that they are resident aliens; all participants - if you will - have social security numbers
      Was his home in the US for more than 6 months and were his children here for more than 6 months? - My understanding is that he is in US for 2 months at a time and goes to South Asia for 10 months of work time. Children / family are stateside while he is away working for the year.

      rfk

      Comment


        #4
        Can claim EIC at least with 2 younger children.

        Family home is clearly in the US. If the older children are under 24, you should check definition of a student on p. 14 of Pub. 596.
        Evan Appelman, EA

        Comment


          #5
          Be careful

          Whether this family qualifies for EIC or not, I would be very careful in working with them. I would do a computation to see how they were living on so little money. This smells like the scenario everyone is freakin gout about on this Board, ie. a new client with a significant potential EIC.

          Comment


            #6
            Yes I am taking my time and research

            Thanks, Kram,

            I am taking my time to research. Main concern is the work overseas, the money made there, and EIC issues. I have to be sure that all is okay first.

            rfk

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