Foreign Income

[monettracy]

I am in the process of filing my 2018 taxes via the Turbo Tax software. For all of 2018 I lived in Australia and received only foreign income from Australia. I left my w-2 blank as I never received one and filled out the section asking how much foreign income I made. I also qualify for the foreign tax exclusion. When I get to the end to efile, it says I'm not eligible to efile as my wages on my w-2 are at 0. When I enter it into my w-2 it says I need an employer ID which I don't have since it's a foreign company. I know many people who have been able to efile their foreign income taxes so I'm just wondering what I am doing wrong. Thanks!

[KarenJ2]

You need to delete your W-2 and probably the wage worksheet.  Do not enter a 'dummy' W-2.

With your return open

1. Open the foreign earned income section

2. On the first screen it will ask you what form your foreign income was reported on, you need to check statement from my foreign employer (converted to USD) 

3. On the next screen enter your Foreign wages 

4. Continue through the screens answering the questions 

If your foreign income is greater than the foreign earned income exclusion and housing exclusion, you can use foreign tax credit to help offset some of the remaining foreign income.

Please note, if  2018 is your first year using the foreign earned income exclusion, you must use it every year going forward (when you are overseas) or the IRS will consider it revoked and you cannot use it for 5 more years.  As Australia has high taxes, you may do better with only using the foreign tax credit.  Just a thought.

[monettracy]

Thank you, I appreciate your help. I followed those steps, however, it still says I am not eligible to e-file. Not quite sure what I am still doing wrong...

[KarenJ2]

If your income is zero, the IRS will not let you e-file.  You will need to enter $1 or so of interest so that you have some income on your return.

You indicate that you are preparing a 2018 return.  I assume you mean a 2019 return.  If you mean you are preparing a 2018 return, all prior year returns must be mailed.