The requirements for determining who must pay estimated tax are the same for a U.S. citizen or resident abroad as for a taxpayer in the United States. For current instructions on making estimated tax payments, see Form 1040-ES.
If you had a tax liability for 2009, you may have to pay estimated tax for 2010. Generally, you must make estimated tax payments for 2010 if you expect to owe at least $1,000 in tax for 2010 after subtracting your withholding and credits and you expect your withholding and credits to be less than the smaller of:
- 90% of the tax to be shown on your 2010 tax return, or
- 100% of the tax shown on your 2009 tax return. (The return must cover all 12 months.)
If less than two-thirds of your gross income for 2009 or 2010 is from farming or fishing and your adjusted gross income for 2009 is more than $150,000 ($75,000 if you are married and file separately), substitute 110% for 100% in (2) above. If you have an eligible small business, substitute 90% for 100% in (2) above. See Publication 505 for more information.
The first installment of estimated tax is due on April 15, 2010. taxmap/pubs/p54-003.htm#en_us_publink100047369
When figuring your estimated gross income, subtract amounts you expect to exclude under the foreign earned income exclusion and the foreign housing exclusion. In addition, you can reduce your income by your estimated foreign housing deduction. However, you must estimate tax on your nonexcluded income using the tax rates that will apply had you not excluded the income. If the actual amount of the exclusion or deduction is less than you estimate, you may have to pay a penalty for underpayment of estimated tax.
For more information about figuring your estimated tax, see Publication 505.
Table 1–1. Ending the Choice To Treat Nonresident Alien Spouse as a Resident
|Revocation|| || Either spouse can revoke the choice for any tax year. |
| || •||The revocation must be made by the due date for filing the tax return for that tax year.|
| || •||The spouse who revokes the choice must attach a signed statement declaring that the choice is being revoked. The statement revoking the choice must include the following:|
| || || •||The name, address, and social security number (or taxpayer identification number) of each spouse.|
| || || •||The name and address of any person who is revoking the choice for a deceased spouse.|
| || || •||A list of any states, foreign countries, and possessions that have community property laws in which either spouse is domiciled or where real property is located from which either spouse receives income.|
| || •||If the spouse revoking the choice does not have to file a return and does not file a claim for refund, send the statement to the Internal Revenue Service Center where the last joint return was filed.|
|Death|| || The death of either spouse ends the choice, beginning with the first tax year following the year in which the spouse died. |
| || •||If the surviving spouse is a U.S. citizen or resident alien and is entitled to the joint tax rates as a surviving spouse, the choice will not end until the close of the last year for which these joint rates may be used.|
| || •||If both spouses die in the same tax year, the choice ends on the first day after the close of the tax year in which the spouses died.|
|Divorce or |
| || A divorce or legal separation ends the choice as of the beginning of the tax year in which the legal separation occurs. |
|Inadequate records|| || The Internal Revenue Service can end the choice for any tax year that either spouse has failed to keep adequate books, records, and other information necessary to determine the correct income tax liability, or to provide adequate access to those records. |