Will I pay taxes. Overseas /Military spouse/Marri File sep . Wrked on base for vendor based out of Hong Kong. No military affiliation. Cash Payments. 12k/yr income.

[JulieS]

Yes, you must include your foreign income on your US tax return, but depending on your circumstances, you may be eligible to exclude your foreign earned income on your tax return. 

To qualify for the foreign earned income exclusion, you must have foreign earned income, your tax home must be in a foreign country, and you must be one of the following:

• A U.S. citizen who is a bona fide resident of a foreign country for an entire tax year.
• A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country for an entire tax year.
• A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

If you don't qualify to exclude your foreign income, you can claim a foreign tax credit for income taxes that you paid to a foreign government.

To enter foreign earned income in TurboTax, please follow these steps:

1. Open your return and select Federal Taxes, then  Wages & Income  
2. Scroll down to Less Common Income, expand the section.
3. Click Start or Revisit to the right of Foreign Earned Income and Exclusion.
4. Answer the first question Yes and Continue.
5. Select the third option A statement from my foreign employer (could be cash) and click Continue. 
6. Answer the remaining questions in the section to see if you can exclude this income.

If you don't qualify to exclude the income, and you paid foreign taxes on it, you can claim a credit for the foreign taxes that you paid. You can't claim the exclusion and the credit. 

To enter foreign taxes paid, please follow these steps:

1. Select Federal on the left, then Deductions & Credits.
2. Scroll down to Estimates and Other Taxes Paid, expand the section.
3. Find Foreign Tax Credit, and click Start to the right.
4. Click Continue, until you get to, Do You Want the Deduction or the Credit? Select Take a credit.
5. When you get to, No Other Income or Expenses, select Yes, if all of your foreign income was reported on forms you have already entered. Answer No, if you need to enter additional foreign income .
6. When you get to, Choose the Income Type, select General category income.
7. On Country Summary, click Add a Country (below the gray bar) and select Hong Kong.
8. Click Continue until you get to, Foreign Taxes Paid - Hong Kong.
9. Complete this screen with your foreign tax information. 
10. Continue until you get back to the country summary.