TurboTax MFJ Foreign income question

[nadjaj 0]

Hi everyone, wow taxes are fun... I'm using Turbo Tax because I tried doing taxes manually and my calculations seemed very off. My fiance came to the US in November 2015 and we got married in December 2015. He has not worked in the US, but worked in the UK until October 2015.

I filled it out as MFJ and it looked like we were going to get a nice return but as soon as I listed his foreign earned income (which I was told that we would not be taxed on because it was lower than the limit) our return morphed into an owed amount. Has anyone else filed similarly on TurboTax and can let me know if I am doing something wrong? There seemed no option to import the 2555EZ form.

Thank you in advance.

[MariaR323 199]

Nich-Nick is the pro on TurboTax - she uses it with her own personal returns. She will probably respond soon. You can also try doing a search using the keywords: turbotax, 2555, exclusion - I'm sure it will come up with prior postings with more details on how to get it to that point.

But meanwhile, yes, when you add the foreign income you should be able to also apply the foreign earned income exclusion (FEIE).

[MariaR323 199]

Here's a couple threads I just found on a search:

http://www.visajourney.com/forums/topic/585792-tax-help-income-from-2-countries-in-2015-k-1-visa/#entry8011131

http://www.visajourney.com/forums/topic/588380-declare-pre-arrival-earnings/

Also, for the election statement that you'll need, I can share the one I wrote up for my clients: IRC Section 6013g NRA Election for RA.pdf

[Nich-Nick 3,353]

Are you using online TurboTax or did you install the software?

Did you enter the UK income under "less common income"? Do not enter it where you put in your W2 information and US income.

Did it guide you through Form 2555? I use the installed version and they do not offer the short form EZ.

If you installed it on a computer I can tell you where to check your forms. Online is a bit more automated and limits some of that I think.

[nadjaj 0]

I'm using the TurboTax online, but if downloading it is better, then I can do that.

[Nich-Nick 3,353]

I'm using the TurboTax online, but if downloading it is better, then I can do that.

Ok, I just rushed through an online tax return while sitting at Starbucks enjoying the nice weather. If you will go to Review and skip over (for now) the things they point out you need to fix, there are some tiny words that say

Analysis - Audit Defense- Summary

Click Summary. Then lower on the left left click Preview.

Click summary and it pulls up a sorta copy of your return. Look at form 1040, line 7.

It should have a total equaling US + foreign income.

Then look at Line 21 Other Income

The long blank should say Form 2555-Foreign Earned Exc and the shorter blank -$12345.00 (whatever the amount of the foreign income is). And the minus number will be in the far right number as well -$12345.00

If you don't have that in Line 21, you didn't get the exclusion done right. Report back if that is the problem.We can troubleshoot from there.

You can't see the Form 2555 on that preview. If you download the 29.99 version you can see all forms, print them as many times as you want even before you finish just to look at, start a second return, save as a PDF, etc. I got mine from Amazon.

[Dal&Rose 45]

Definitely listen to Nich-Nick. Because of her I was able to do my taxes on TurboTax with downloaded version, I'm just waiting for a few documents from my husband by mail before I print it off and mail them in.

BTW - Thanks for all the help on here, Nich-Nick. I did get a nice refund (if I did them correctly of course. I've never done them on my own. So it was an experience, and to add in foreign income it wasn't too bad.)

[Mena28 35]

I also have a question regarding the 2555-EZ. I have been able to figure out most of it based on previous comments (especially posts by Nich-Nick :-)), but the one thing I am not sure about is this:

When I do the sum for the total foreign income (converted to US Dollars and all that) on Line 17, do I use the pre-tax income (Brutto) or the post tax income (Netto) of what I made in my country each month? I paid taxes, there, obviously, plus social security etc.

Help would be great!

thanks!

[Nich-Nick 3,353]

When the IRS says TOTAL Income, they generally mean gross before taxes and other things are taken out.

[Mena28 35]

When the IRS says TOTAL Income, they generally mean gross before taxes and other things are taken out.

Ok! Thanks so much!