Tax Filing Question (MFJ) Tax Year Differences

[EnglishLove 112]

Just now, geowrian said:

Did you complete the FEIE (2555/2555EZ) to then exclude the income?

I was just using the Turbo tax and entered earned income 

[geowrian 22,336]

Just now, Pooley said:

I was just using the Turbo tax and entered earned income 

I believe it appears after the section where they ask for income. I didn't use TurboTax this year so I don't know for sure where they put it, but it's normally after the income section.

[Derek & Cece 27]

2 hours ago, geowrian said:

How much they withheld doesn't matter for US tax purposes. They just need a number for how much was earned (gross).

Assuming the FEIE applies and the earned amount is under ~$100k, I wouldn't be too worried with the exact amount as it will all be excluded anyway. This doesn't mean don't do you due diligence to get the best number possible, but don't freak out if it turns out not to be exact.

As far as I understand FEIE does apply, so I'm filing that way and I'm doing my best to make her information as accurate as possible, even though her income will be excluded from taxation. She's lived in AU for 5 years, including most of 2019, so AU qualifies as her tax home. I filled out the 2555 and my refund amount looks to be what I expected, nearly $2500 between federal and state.

[EnglishLove 112]

Just now, geowrian said:

I believe it appears after the section where they ask for income. I didn't use TurboTax this year so I don't know for sure where they put it, but it's normally after the income section.

I didn’t see that. I think it’s a separate form

[Derek & Cece 27]

3 minutes ago, Pooley said:

I was just using the Turbo tax and entered earned income 

I used Jackson Hewitt and I had to manually have the tool show me all forms and the 2555 was under the Foreign section.

[EnglishLove 112]

1 minute ago, Derek & Cece said:

I used Jackson Hewitt and I had to manually have the tool show me all forms and the 2555 was under the Foreign section.

Okay, I’ll look that up and see if that helps! Thank you

[Wuozopo 4,285]

20 hours ago, Derek & Cece said:

My question is: Am i expected to calculate her total earnings and what taxes were withheld from her in 2019 via her paystubs (assuming she has/can get them all), do I need to file an extension and wait for her 2019-2020 tax documentation, or do I just report what this paper shows even though I know she earned income from JUL-OCT of 2019 that this documentation does not reflect?

This doesn’t have to be so complicated.  I seriously guessed my income as best I could. No form showing the actual factual foreign Income is submitted with your tax return. Any tax paid to AU is not needed for the Foreign Income Exclusion. If your monthly income was approximately the same each month, then calculate a reasonable amount that will cover the months Jul-Oct that you have no record of.  

[Naes 12,205]

It is rather easy on TurboTax it will lead you after you finish entering information.

 

for the amount of Income you can use the ratings on IRS website.

 

the only thing I’d advice is don’t forget to print it out and send it by mail (adding your w2 along )

it will give instructions for both federal and state return.

you need to send by mail in order to count your wife as resident for tax purposes, so add that paper with your returns when sending it in.

[Derek & Cece 27]

59 minutes ago, Naes said:

It is rather easy on TurboTax it will lead you after you finish entering information.

 

for the amount of Income you can use the ratings on IRS website.

 

the only thing I’d advice is don’t forget to print it out and send it by mail (adding your w2 along )

it will give instructions for both federal and state return.

you need to send by mail in order to count your wife as resident for tax purposes, so add that paper with your returns when sending it in.

So wait, I can't e-file? It has to be printed and mailed in? That's weird, Jackson Hewitt didn't tell me that, they said I was fine to e-file.

[geowrian 22,336]

26 minutes ago, Derek & Cece said:

So wait, I can't e-file? It has to be printed and mailed in? That's weird, Jackson Hewitt didn't tell me that, they said I was fine to e-file.

If you are making the election to be treated as a resident alien for the entire year (https://www.irs.gov/individuals/international-taxpayers/nonresident-alien-spouse) - as required to file jointly here - then you must attach a letter making the election. There is no way to do so when e-filing, at least none that I am aware of as of at least last year.

Edited February 1, 2020 by geowrian

[Naes 12,205]

40 minutes ago, Derek & Cece said:

So wait, I can't e-file? It has to be printed and mailed in? That's weird, Jackson Hewitt didn't tell me that, they said I was fine to e-file.

I believe it was on the IRS website, I remember researching for months and going crazy.

 

most softwares will let you just print the file in the end to file it by mail.

[EnglishLove 112]

On 1/31/2020 at 8:20 PM, geowrian said:

I believe it appears after the section where they ask for income. I didn't use TurboTax this year so I don't know for sure where they put it, but it's normally after the income section.

So adding his income shouldn't be affecting my refund if I'm doing it right?

[Wuozopo 4,285]

57 minutes ago, Pooley said:

So adding his income shouldn't be affecting my refund if I'm doing it right?

When TurboTax shows you a running total of your refund it is misleading. Until you enter everything, you are being mislead by that gimmick. 
 

But  a $3500 swing sounds like you have made a mistake. Print a copy of your 1040 From the program. Check the following lines:

 

Line 1. Total of [your salary income] PLUS [his foreign income]. Is the total correct? 

Line 8a. His income with a minus sign in front of it. Example:  -18,000

 

 

 

[EnglishLove 112]

On 2/3/2020 at 9:49 AM, Wuozopo said:

When TurboTax shows you a running total of your refund it is misleading. Until you enter everything, you are being mislead by that gimmick. 
 

But  a $3500 swing sounds like you have made a mistake. Print a copy of your 1040 From the program. Check the following lines:

 

Line 1. Total of [your salary income] PLUS [his foreign income]. Is the total correct? 

Line 8a. His income with a minus sign in front of it. Example:  -18,000

 

 

 

So on H&R I was able to put a (-) in front of his income and it worked, bringing back my refund. On Turbo tax, it will not let me put a (-) sign. 

[Wuozopo 4,285]

42 minutes ago, Pooley said:

So on H&R I was able to put a (-) in front of his income and it worked, bringing back my refund. On Turbo tax, it will not let me put a (-) sign. 

That is because by just adding  a minus sign manually, you are over-riding their programming and altering the accuracy. If it wasn’t already a minus sign, you did something wrong. You can’t just fix it by putting a minus sign in yourself.
 

If you go through the Less Common Income section of TurboTax and answer the questions, it will fill out Form 2555, put the exclusion on a filled out Schedule 1, and enter it as a minus number on the 1040. You will require at minimum a 1040, Schedule 1, and Form 2555. If you got interest paid on any bank accounts, then there is a Schedule B in your return as well. 
 

 

Edited February 4, 2020 by Wuozopo