Will I get a reimbursement if I upgrade service to ask a question that might be causing a system glitch on their end?

[kiyomi-peach]

I work on a US military base overseas as a DoD employee, and my wife works for a foreign company. I know my income is not Foreign Income but my wife's is. It shows hers as Foreign Earned Income Exclusion up to the review. At the review, I am showing either my income(w-2) or 0 and I have to correct it but I believe that I entered everything correctly. I cant get through to file. I need their assistance and am thinking to upgrade my service but if this is causing by their system glitch, I don't think I want to pay extra. (I am not in the high tax bracket and it shows as I get a refund)

[pk]

@kiyomi-peach 

(a) assuming that you are using a windows download version of the product  ( because I am not familiar with  the on-line  version );

(b) You a US person stationed abroad with DoD -- thus your income is  US sourced and taxed accordingly

(c) Your spouse  -- is she a  US person ( citizen / GreenCard) ?  Is she at your tax home ?  Which country is her earnings from ?

(d) if spouse is not local ( i.e. she has always lived there and is a citizen of that country ), then  when dis she enter that country ( Tax Home start date  )

  I will circle back once I hear from you.   If you are using the On-line product ( my question s will still need to be answered ) I  will page another  expert to help you.

Is there more I can do for you in  the meantime ?

[kiyomi-peach]

(a) assuming that you are using a windows download version of the product  ( because I am not familiar with  the on-line  version );

-Yes I'm using the online website

(b) You a US person stationed abroad with DoD -- thus your income is  US sourced and taxed accordingly

-Correct

(c) Your spouse  -- is she a  US person ( citizen / GreenCard) ?  Is she at your tax home ?  Which country is her earnings from ?

-She is not a US citizen, lived in the states with GC, No we are both living in Japan, She is a Japanese citizen earning from Japan

(d) if spouse is not local ( i.e. she has always lived there and is a citizen of that country ), then  when dis she enter that country ( Tax Home start date  )

-We both moved back to Japan in 2016. I believe she is entitled as a permanent resident in the state for Tax Purpose.

Thank you, Champ pk!

[kiyomi-peach]

Champ pk, any updates or advice ? My answers to your questions are on my last reply. Please help!

[pk]

@kiyomi-peach , my  apologies for delay in responding.

(a) My struggle  has been  how to answer  if you will benefit  tax liability wise with a higher level of service  ( from TurboTax).  My understanding here  is that  TurboTax  services  ( whether in answering your queries directly/live or prepare the return for you  etc. )  ONLY assures you that your return has been correctly prepared and based on information you have/do  provided/ provide.   Higher functionality products  help  you in preparing a correct return.   I am not aware  of any TurboTax service will assure you that you get  a larger refund or lower tax liability.  So I am at a loss  on how to answer this query.

You said that you both move to Japan in 2016.  So how have you been filing your joint return ?  Or is it that your wife  started earning in Japan only for 2024 and therefore the questions ?

(b) As I said in an earlier post and based  on your responses --

             1.  You need to enter your W-2  as per usual -- just as if you were in the US ( since you are working  for and  paid by DoD ).

             2. For your wife, you do NOT enter her income  under wages .  You need to  go down the list of personal incomes ( On my windows product I get there by  selecting "I will choose what I work on "-- under personal income tab) till you see  "Foreign Earned Income and Exclusion ". Select that and follow through the  next few screens  --- .  This fill out the form 2555  ( to qualify  your wife  for physical presence  test. ).

            3.  Once your wife's Foreign Source income has been excluded ,  you be getting the most  tax beneficial outcome.   

I have , in other post have covered this  -- how to exclude  Foreign Earned In come.  But would be happy to walk you through this process.

Note --    (a)   I am not familiar with the On-line version of TurboTax and so  I will have to get another expert ( familiar with the On-line product  to help  on the specifics ).

                (b)   Even though all her  foreign income  is excluded from US taxes, your marginal tax rate  is computed as if her income was included  ( this is the this works per the IRS rules and regs. ), but  this is a better path  ( tax liability  wise ) then  trying to use Foreign Tax credit  ( for the taxes she pays to Japan ).

Is there more I can do for you ?   

Sorry , I cannot advise you on  cost/benefit   vis-a-vis usage of TurboTax services  ( Full Disclosure :  I  have no beneficial  -- financial or otherwise connection with TurboTax , Intuit, Lacerte, Pro Tax etc. -- just a volunteer).

[kiyomi-peach]

Thank you pk. I should have more clear when I post my question here. Since 2016, I have been using TurboTax DX to do file myself with same situations and I had no problems to file with my wife’s Foreign Income. This year, I am doing the same way that I have been doing since 2016, but there is an error in Foreign Income section at the review in the end and I can’t go further. So I believe there might be a system glitch on their end but the only way I can confirm would be upgrade the service to talk to someone. My filing is simple and I don’t need to upgrade the service. Is there any contact number or email address to ask them if their system is not causing this? Do you know?

[pk]

@kiyomi-peach  I will forward  your post to  moderators  (they can help).  

Another option is to post details of the issue  here and  may be one of us can help  while you wait for the moderators .    Your choice

pk

[MarilynG1]

On testing this in in TurboTax Online, here's some steps you can check.

In the left-side menu (while in your return), click on Tools > Tax Tools, then choose View Tax Summary from the pop-up menu.

Back at the left-side menu, choose Preview my 1040.

Scroll down to Schedule 1, Line 8d.  You should see the amount of the Foreign Earned Income Exclusion.  

If you don't see an amount there (or 0), go back through the interview screens in the Foreign Earned Income Exclusion section.  There are a lot of questions there, and if you answered one incorrectly, the income may not have been excluded properly.

As far as getting a reimbursement for upgrading to TurboTax Live, I can't answer definitively  on that, but you may not need to if you can get the FEIE reported correctly.

Here's some info on Tax Tips for Resident and Non-Resident Aliens and the Foreign Earned Income Exclusion.

@kiyomi-peach 

[kiyomi-peach]

Thank you, MarilynG1. I see the correct amount in Schedule, Line 8d.  I have gone back to the questions many times but at the last review it shows my W-2 amount with -(negative) on 2555 line 24 and 26  which it should show my wife’s income in stead and it says check this entry. Also it says “ dates for bona fide are missing”which I have entered and showing they are there on the questions screen but it’s not reflecting to the 2555 on the review. Please help!

[kiyomi-peach]

I just realized that I’m trying to exclude my wife’s foreign income but form 2555 keeps showing as my W-2 income will be excluded. What am I doing wrong? I believe I entered all questions correctly.

[kiyomi-peach]

I cleared and started all over. There is no error shows now. Thank you fr our help!