How do I report foreign income exclusion?
To claim the FEIE you must file Form 2555. You’re a government employee — Unfortunately, U.S. government employees cannot claim this foreign income exclusion.
How do I report foreign wages to the IRS?
You must attach Form 2555, Foreign Earned Income, to your Form 1040 or 1040X to claim the foreign earned income exclusion, the foreign housing exclusion or the foreign housing deduction. Do not submit Form 2555 by itself.
Who qualifies for foreign housing exclusion?
Bona fide residence test — You must have qualified as a bona fide resident of a foreign country for an uninterrupted period that includes an entire tax year. Physical presence test — You must have physically been in a foreign country for 330 or more full days out of a 12–month period.
How do you do a Substantial Presence Test?
To meet this test, you must be physically present in the United States (U.S.) on at least:
- 31 days during the current year, and.
- 183 days during the 3-year period that includes the current year and the 2 years immediately before that, counting: All the days you were present in the current year, and.
Where do you report foreign income on the 1040?
Foreign interest and foreign dividends are reported on the 1040 and Schedule B. Even if it is below $1,500, since the interest and/or dividends will (usually) originate from a foreign financial account, Schedule B is filed for Part III of the form.
Where do I report foreign tax paid on 1040?
For each fund that paid foreign taxes, report the amount from Box 7 of your Form 1099-DIV on Form 1040. You do not have to fill out Form 1116, Foreign Tax Credit (Individual, Estate, or Trust).
How do I report foreign income without W2 on TurboTax?
I have no W-2 from my foriegn employer. You can use TurboTax to enter your income earned abroad, even if it is not reported on a Form W-2. TurboTax supports Form 2555, Foreign Earned Income, to calculate your foreign earned income exclusion and foreign housing exclusion or deduction.
Where does foreign income go on 1040?
How do you know if you passed the substantial presence test?
If your “Total Days of Presence” is 183 or greater, then you pass the Substantial Presence Test and are a resident alien for tax purposes.
What happens if you pass a substantial presence test?
If you pass the substantial presence test, the IRS considers you a US resident for tax purposes. If you’re planning on an international move in the near future, you should understand how your physical residence impacts your tax obligations.