Electronic or Paper filing - Forms and Federal statements and worksheets

[jschoomer]

Hello!

I use TurboTax for my taxes but since my mom is a foreign national and a US green card holder with only foreign income (pension, annuities and interest), the Turbo Tax guided workflows did not help her for 2019 taxes. So for 2019, she used a CPA to file her US taxes electronically. Since she didn't like his services, she decided to have me file her 2020 taxes myself. She had requested an extension for 2020 taxes so I am planning on filing by Oct 15th 2021.

I looked at the packet the CPA sent her for 2019 taxes. It includes the following info:

• Forms filed: FEDERAL - Form 1040-SR, Schedule 1, Schedule 3, Schedule B, Form 1116, Form 4868, Form 8879, Form 114 Form, 114a | VA STATE - Form 760CG, Form 760IP, VA-8879
• Federal Statements
• Federal Worksheets

I do not know if there's a way to do an electronic filing because I cannot use any of the guided questionnaire to answer questions about her 100% foreign income so my thought was to do a paper filing. Unless, there's a free site that allows you to plug in the numbers into the forms and submit electronically. BTW, she does qualify for free IRS filing based on her income.

My question is:

1. If I am doing a paper filing, do I just mail ONLY the Federal and State forms to IRS and VA State, or do I need to mail the Federal Statements and Worksheets - I have no idea where to find these Federal Statements and Worksheets but I am able to do calculations based on what the CPA did last year.
2. If I only need to file ONLY the Federal and State forms to IRS and VA State, is there any free IRS-partnered easy-to-use electronic filing site that will allow me to plug in the numbers in whichever forms I choose (no questions asked), and then allow me to submit all those forms electronically?

Thanks,

JS

[Carl]

TurboTax does not support or include the 1040-SR. However, if the tax filer is a U.S. Citizen or legal resident alien with a green card and a social security number, there's really no reason they can't use the standard form 1040.  The tax return should also be able to be e-filed too.

Some key points since she only has foreign income:

 - You "MUST" start the W-2 section of the program and a few screens in select the option for "I don't have any W-2's". Then *FINISH* working through the W-2 section. If you do not do this, then the program will *INSIST* you enter W-2 information before you will be able to e-file.

- All foreign income from all sources is entered under the Personal Income tab in the Less Common Income >> Foreign Earned Income & Exclusion section.

- All foreign taxes paid is entered under the Deductions & Credits tab in the Estimates & Other Taxes Paid >> Foreign Taxes section.

[jschoomer]

Thanks, Carl, for the detailed reply.

I can explore that. But out of curiosity, if I had to go with paper filing, would I have to ONLY mail the Federal and State forms? When I see what's in the Federal Statements and Worksheets, there are calculations. And the Federal and State forms have a reference to the Federal Statements and Worksheets because it says see Statement 1, Statement 2, etc. etc.

Cheers,

Sid

[Critter-3]

In the print center you would only use the first option for mailing in the return ... that option has everything you need to mail into the feds & state including the mailing instructions   if you indicate in the FILE tab you are mailing in the return.  

[Carl]

If you elect the option to "print and mail" the return,  the program will print all forms you are required to mail. Additionally, an instruction sheet will be printed too. That instruction sheet will tell you what additional forms you need to include in the mailing - such as a copy of any W-2's or 1099's you may have received in the mail. Finally, the instruction sheet will also provide you the address to mail the return to.

A physically separate instruction sheet will be printed for the state return. The instructions for the state return will not be the same as for the federal return. For example, you mail your state return to the state at the address provided on the instructions for the state return. Then you'll mail the federal return to the address provided on the instructions for the federal return.

Do not mix things up and mail the state return to the IRS, and vice-versa. If you do, then the recipient will "NOT" forward the return to the correct recipient. They will just shred it.

It's also highly recommended that if you mail your tax return(s), that you mail them via certified mail at a minimum, so you can track them for confirmation they were delivered.

Certified Mail only confirms delivery. It does not confirm the recipient actually received it.

Return Receipt Required (not requested) requires the recipient to sign for receipt of the mail and is confirmation the intended recipient received it. While it cost a few bucks more, in my opinion its the better way to go.

[VolvoGirl]

@Carl  Yes of course Turbo Tax has the 1040-SR.  You automatically get it if you are 65 or older.  Last year there were a lot of questions from upset people who didn't want to use the 1040 SR form.   Only in the Desktop program can you select not to use it.

[jschoomer]

Carl:

Thanks. I started doing exactly what you suggested below. However, after I filled everything out, I looked at the 1040 form and noticed that the foreign earned income is shown in 1040, Line 1 as Wages, salaries, tips, etc. Attach-Form(s) W-2 field. When I compared that to what the CPA did with the foreign income last year, the amount showed up on Line 7 saying Other Income from Schedule 1, Line 9.

How do I change this. I did select "I do not have any W2s" in the TT questionnaire for Wages and Salaries. All the foreign income is nothing but pension since my mom is retired.

Thanks,

JS

[Carl]

I'm not sure, but I think it has something to do with weather or not you select to actually take the foreign income tax exclusion. Hopefully someone else more knowledgeable on that aspect will jump in here.

[jschoomer]

I think you are correct. That's what it boils down to - my mom did not spend more than 330 days in the foreign country so she is not eligible for the exclusion. Thus, her income does not appear on line 7 and instead is on line 1 of 1040.

So now the question is: she does not have a W2 and that's what I have entered in TT. Will IRS or VA State have a problem when I file her taxes because there will not be any accompanying W2?

Thanks,

JS

[Carl]

TT. Will IRS or VA State have a problem when I file her taxes because there will not be any accompanying W2?

Why would they? Reporting something you don't have would be fraudulent.

[jschoomer]

Carl:

I am reading your reply to mean "IRS and VA State will have a problem with her taxes because there is no accompanying W2".

What are my options then? I have documentation from the foreign country that shows her pension amount but very obviously it's not a W2. I have entered it in the Less Common Income >> Foreign Earned Income & Exclusion section. I also specified in the W-2 section at the beginning that "I don't have any W-2's".

Regards,

JS

[Carl]

What are my options then

You are creating an issue, where none exist. There is "NO" requirement to mail in anything that is not specifically and explicitly identified as required, in the printed instructions. (Assuming you elect the option to print and file)

[jschoomer]

Carl:

Sorry. I am just being nervous since I am doing this the first time for her. I am filing electronically so I will let TurboTax handle this.

Thanks for all your help!!

Regards,

JS

[Carl]

If you're e-filing, then absolutely no 3rd party forms are transmitted to the IRS or state, and none are required to be.

Now I have heard of situations where some 3rd party form may be required to be included with the e-filing. But from what I understand the program will tell you that and give you the option to import that form in PDF format *IF* you have a scanner. I don't know the facts on that, as I've never personally had to deal with it. I've just heard such stories very rarely.

Also, if the taxing authority requires some 3rd part form that you may have forgotten to include, then they will send you a letter via U.S. Mail specifically requesting it. This is no big deal.

The IRS/State are not going to send down black hawk helicopters to hog tie you, carry you to the IRS dungeon and drop you there just because you forgot something.