I am assuming you are a US Citizen. You will report and pay (if you owe) all of your income and claim the foreign income exclusion or credit by selecting the following:
- Wages and Income
- Show more next to less common income
- Start next to Foreign Earned Income and Exclusion
- Answer yes to did you make any money outside the US.
As you walk through the entries for your income, TurboTax will help you decide if you can and should take the Income Exclusion or Foreign Tax Credit.
To qualify for the Earned Income Exclusion of up to $112,000 you would have to have lived outside the US for 330days out of 12 months. If you were in the US for 35 days or more during those 12 months, you would not qualify for the exclusion. As you walk through this section, if you qualify, you may also be eligible to claim a housing allowance. Be aware, if you claim the exclusion you cannot take certain credits such as the Earned Income Credit, if you take the foreign earned income exclusion.
If you are paying taxes in Japan, and do not take the Foreign Earned Income Exclusion, then you could also qualify to take a tax credit on your US return for taxes paid to Japan. When you get to the end of the program, you will be given the chance to pay your taxes if you owe. You can do it through TurboTax or you can do it by visiting IRS Direct Pay. You can also mail a check. A voucher will print with your return for you to mail a payment.
If you are not a US Citizen and have another reason you are asking and filing, you may need to contact Sprintax.com to file a 1040NR as TurboTax does not handle the nonresident form. You may also have Chinese filing requirements depending on your situation and China's tax laws.
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