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abby1234
Returning Member

Foreign earned income exclusion for my spouse - please help!

Thank you very much for the information. My main problem is that I don't know which line to add her foreign wage in 1040 form.  Line 1 on form 1040 (Wages, salaries, tips, etc.) seems to associate with W2, which she doesn't have. Schedule 1 also has no section for foreign wage. So I don't know how to include her wage in  taxable income.

 

If I understand correctly, foreign tax credit (form: 1116) and Foreign income exclusion (form: 2555) are more like the tax deduction stage and don't aggregate into income (line:15 in form 1040)

 

Please help. I have spent days to find answer specifically for this but I can't find people having the same issue. IRS website also doesn't indicate where to report foreign wage in 1040.

Foreign earned income exclusion for my spouse - please help!

I'm not a tax expert. The wages are generally converted to USD equivalent. 

My tax person, who did a foreign earned income exclusion (not a foreign tax credit) since that was more benefitial. I'm looking at my 1040 schedule 1, he added her foreign income in 8z in USD, and he added the exclusion also in 8d. 

abby1234
Returning Member

Foreign earned income exclusion for my spouse - please help!

superduper

 That's what I need! Thank you very much. This helps a lot and I do really appreciate

Foreign earned income exclusion for my spouse - please help!

@abby1234 TurboTax is no longer a member of the IRS Free File Alliance. I suggest contacting customer support for the programme you are using or hiring a tax professional. 

 

Using a 'free programme' to prepare a complex tax return will not save you money if the IRS audits you and levies interest, penalties and back taxes. There are plenty of accountants who specialise in ex-pat taxation, which is a complex and difficult area.

Foreign earned income exclusion for my spouse - please help!

If you did not receive a W-2 for your wages, there is no need to complete the W-2 section.  Report your foreign earned income on Form 2555.

If you started a W-2, then delete the W-2.

Enter w-2 in the Search box located in the upper right of the program screen.  Click on Jump to w-2

To enter Foreign Earned Income -

  • Click on Federal Taxes (Personal using Home and Business)
  • Click on Wages and Income (Personal Income using Home and Business)
  • Click on I'll choose what I work on (if shown)
  • Scroll down to Less Common Income
  • On Foreign Earned Income and Exclusion, click on the start or update button

Or enter foreign income in the Search/Find box located in the upper right of the program screen.  Click on Jump to foreign income

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