Foriegn tax credit & State Non-resident

[shapra]

For the year 2008, I claimed foreign tax credit (Form 1116) on my federal return. Also, for state (CA), my returns were filed as non-resident (form 540 NR). My tax preparer seemed sure this will not affect my future citizenship application.

I was out of the country for about 20 months, entering every 4-5 months or so due to a family situation. I worked for a US corporation overseas during this time. I also had a re-entry permit that I never used.

I am eligible to apply for Citizenship.

Would my 2008 Tax filing jeopardize this?

 

[nkm-oct23]

Claiming foreign tax credit does not jeopardize citizenship application, nor does filing 540NR (if you lived in CA for less than 180 days that year).

 

[DreamUSA]

For the year 2008, I claimed foreign tax credit (Form 1116) on my federal return. Also, for state (CA), my returns were filed as non-resident (form 540 NR). My tax preparer seemed sure this will not affect my future citizenship application.

I was out of the country for about 20 months, entering every 4-5 months or so due to a family situation. I worked for a US corporation overseas during this time. I also had a re-entry permit that I never used.

I am eligible to apply for Citizenship.

Would my 2008 Tax filing jeopardize this?

You have few issues going on.

California return. Your tax preparer may not be familiar with USCIS and Immigration regulations for Naturalization (and N-400 form). You will have to disclose filing non-resident California return in question 13 and be prepared to answer the residency questions. I assume you claimed non-Residency because of Foreign residency not because of residing in the other US state (Nevada, Texas, etc). This is a potential red flag to USCIS that you may have retained a foreign residency. You may want to consider amending your California return to resident one for 2008 if the basis for non-resident return was related to foreign residency.

Residency dates. Regarding counting residency dates. There are good experts on this forum. They will chime in.

Foreign tax credit. Also, you noted you claimed a foreign tax credit in Federal return. I assume you filed resident return. Claiming a foreign tax credit on its own is not an issue. However, if USCIS investigates this and asks for transcripts, they may get suspicious if you retained a foreign residency instead of US Residency. This is lesser concern, very unlikely scenario, but not impossible.

 

[shapra]

Thank you for the replies.

Claiming foreign tax credit does not jeopardize citizenship application, nor does filing 540NR (if you lived in CA for less than 180 days that year).

You have few issues going on.

California return. Your tax preparer may not be familiar with USCIS and Immigration regulations for Naturalization (and N-400 form). You will have to disclose filing non-resident California return in question 13 and be prepared to answer the residency questions. I assume you claimed non-Residency because of Foreign residency not because of residing in the other US state (Nevada, Texas, etc). This is a potential red flag to USCIS that you may have retained a foreign residency. You may want to consider amending your California return to resident one for 2008 if the basis for non-resident return was related to foreign residency.

Residency dates. Regarding counting residency dates. There are good experts on this forum. They will chime in.

Foreign tax credit. Also, you noted you claimed a foreign tax credit in Federal return. I assume you filed resident return. Claiming a foreign tax credit on its own is not an issue. However, if USCIS investigates this and asks for transcripts, they may get suspicious if you retained a foreign residency instead of US Residency. This is lesser concern, very unlikely scenario, but not impossible.

The federal return was filed as Resident. I will have to disclose the overseas employment & employer address anyway. I will look at amending Cal state returns.