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Samhornnn
Level 1

Non Profit Out of Country Work

I am the Executive Director of a 501c3 registered in California, but with a base in Panama where I live 75% of the time. Can a write off my international travel and living expenses? They only send me a Paypal 1x a month for a small amount, which is considerably less than minimum income. Last year I got taxed with about $1200 and would like to avoid that again. 

2 Replies
SoCalGal22
Employee Tax Expert

Non Profit Out of Country Work

Yes, if you are a US citizen or resident wanting to file US taxes, you can use TurboTax even though you live overseas.  After entering your information, the program will help you figure out if you qualify for the foreign income exclusion and calculate your foreign tax credit accordingly.

Per IRS, if you lived outside United States for at least 330 days during 12 consecutive months, you might be able to exclude your foreign income from your taxes.  For more information, see  Foreign income and exclusion and Extension.  For tax year of 2016, the maximum foreign earned income exclusion amount is $101,300.  After the exclusion, If you pay foreign taxes to both US and the foreign government on the same amount of income, you can take a foreign tax credit. To avoid double dip, do not use exclusion and tax credit on the same amount of income.

 

To enter foreign earned income / exclusion in TurboTax online program:

1. After sign into your account, select Take me to my return 

2.  At the right upper corner, in the search box , type in foreign income and Enter 

3.  Select Jump to foreign income 

4.  Next screen, Did You Make Any Money Outside the United States? answer Yes 

 

5.   On screen, What Form(s) Was Foreign Income Reported On ?check the third box and continue to proceed.

 

 To enter form 1116, foreign tax credit :

1. After sign into your account, select the orange buttonTake me to my return

2.  At the right upper corner, in the search box , type in foreign tax credit and Enter

3.  Select the 1st choice on the search results - Jump to foreign tax credit 

 

4.  Start with screen Foreign Taxes and select Continue  to follow prompts.

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SoCalGal22
Employee Tax Expert

Non Profit Out of Country Work

However California does their own calculations on whether your income is taxable by the state.   It's a CA Non-Profit, so it is CA sourced income that CA will tax.  

 

I hope that answers your questions. Please feel free to give TurboTax a call anytime if you have additional questions or need assistance.

 

Have a great day!

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