Prior-Year Return
The prior year return is called a previous year filed tax return
Uses
- We can get the client's basic information from last year's Form 1040. This can help us file this year's return for the current year
- You can also obtain the details of the premium tax credit from your tax return.
Resident | Alien Resident | Non - Resident Alien
- A resident is an individual who possesses a green card.
- An alien resident is someone who has permission to live in the USA and has passed the green card test.
- A non-resident alien is an individual who enters the USA with a limited visa period and is not eligible for a green card.
note :
For taxes, you count as being in the U.S. if you're in the country for 31 days this year and 183 days over the last three years. This three-year period includes this year and the two years before it.
FBAR (foreign financial accounts and specified foreign assets)
FBAR
FBAR refers to the requirement for U.S. taxpayers to report their foreign financial accounts to the U.S. Treasury Department, particularly if the total value of the accounts exceeds $10,000 at any point during the calendar year. must file 8938 form
You need to report these types of foreign financial assets on the FBAR:
- Dealing with a foreign trust (also includes form 3520) (like gifting someone outside the USA)
- Owning shares in foreign companies or partnerships (also includes form 8865)
Tax Return filing Due date
- The tax return is due on the 15th day of the 4th month after the tax year ends
- A 2-month extension is automatically granted for people living abroad or military personnel on duty
Filing Status
MFJ (Married Filing Jointly)
- "Married Filing Jointly" (MFJ) is a filing status for married couples who opt to combine their income and deductions on one tax return.
- If you're legally married by the end of the fiscal year, your only filing option is MFJ.
- MFJ is not permitted if one spouse is a non-resident alien.
- Same-sex couples are eligible for MFJ.
- If you're an injured spouse, file Form 8379