My wife and I lived in Spain teaching English for part of 2017, and made a combined income of about $9,000 during our time there. Do we have to pay tax on this income?

We both worked as ESL teachers for companies that pay taxes in Spain, but the companies do not provide a W-2 as they are based in Spain. We moved back to the US in July 2017, her total US income was $8,500 and I didn't start working until 2018. How do I declare these funds on my return, and is there a way to avoid having to pay on the $9,000 earned in Spain?

Get your taxes done using TurboTax

Yes, you will need to pay taxes on this income, the US taxes income earned worldwide by U.S. Citizens. There really is not a way to avoid paying taxes on the income earned.  If you paid taxes on the income in Spain, you can enter the information and possibly take a foreign tax credit. 

To enter the income you earned in Spain, you will do the following:

  1. Click Federal
  2. Income and Expenses
  3. Scroll down and click Show More next to Less Common Income
  4. Click Start next to Foreign Income and Exclusion
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

Get your taxes done using TurboTax

Thanks so much for the thorough response!