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I am a us cirizozen living and working abroad and I need help filing my 3024 taxes as an expat. What is the easiest way? I earned 40k in wages plus 1k in rental income.

I also have a bank account I foreign currency. What is the easiest and cheapest way to file it. ?
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1 Reply
pk
Level 15
Level 15

I am a us cirizozen living and working abroad and I need help filing my 3024 taxes as an expat. What is the easiest way? I earned 40k in wages plus 1k in rental income.

@alicjaczaja , while I am not familiar with the screens and capabilities of the on-line versions of TurboTax (I am very familiar with the Windows download versions), am pretty sure that you  have to upgrade to higher version to deal with foreign earned income and rental income.  My favorite for this type of situation is to use  Windows download  " Home & Business".  It is obviously more expensive  but covers all the complex situations.

(a)  In your particular case , you can use "foreign Earned Income Exclusion " to exclude your foreign earned income -- the max amount for 2024 tax year is US$126,500.

(b) Your rental income needs to be reported on Schedule-E . Note that here the  deductions will be based on US rules, irrespective of what your tax-home country allows.  You also have to recognize depreciation under US laws/ methods.  I say have to because , even if you choose not to , the effects of allowable depreciation, when you dispose off the asset, will still be taken into account.

(c) As a wage earner in a foreign country ( foreign tax home ), you are still subject to US FICA / SECA rules/ obligations.  So you have to file a Schedule-SE and pay the 15.3% of your gross  foreign wages --  this is the   Social Security and Medicare  that you would have paid if you were earning in the USA.  

Note that US has "Totalization agreement " with many countries  which allows you to pay Social Security taxes to only one country.

Which country is your tax-home ?

I am assuming that you are either self-employed or you are employed by  a local entity -- not by the US govt. or any of its departments.

 

Is there more I can do for you ?

I will circle back once I hear from you -- yes ?

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