working in a foreign country with parent assistance

[jobuzo]

I studied in the Netherlands and worked part time. I only made about $7,000 in 2023 and graduated in 2023. In 2024 I worked and earned about 18,000. My parents still help me pay rent. So I am doing both years now and in 2023 as an example I earned $7700 and the standard deduction is $13,850. My line 15 taxable income in the negative. However in 2024, my income was $17,800 with a standard deduction $14,600 giving me a line 15 taxable income of $1,809. Since I do not have a W2 earned no income in the US and have a $1,809 taxable income how do I deal with this. By putting $0 in all the tax blocks, the 1040 form tells me on line 37 to subtract line 33 from line 24, 0 - 1,809 = 1,809. That cannot be the amount I owe. What am I missing?

In 2023 I was in the negative so I see that one clearly.

[pk]

@jobuzo , assuming that you are a US person ( citizen/GreenCard ),  and having a  foreign tax home   ( Netherlands),   you should be able to exclude your foreign earned income from US taxes.  You still have to file a return  and that is all.  No State return because you are not a resident of your state ( and no State sourced income ).

Is this something you would like to do ?  If so tell me how  I can help you do this -- yes ?

[Vanessa A]

Are you doing this on paper or are you using TurboTax? It sounds like paper?

The amount on line 15 would be $0.  If your income is less than the standard deduction, the number that is entered on line 15 is just $0 as you cannot have negative income.  Why are you filing your 2023 return if you have no taxable income?  

No, if your taxable income is $1,809 you would not owe $1,809.  You would be in the 10% tax bracket for that income

You may want to use TurboTax to do the entries and the calculations even for 2024 to ensure you are entering the correct numbers on the correct line.  

Here's how to enter your foreign income using the online version:

1. Sign in to TurboTax and open or continue your return.
2. Search for foreign income.
3. Select the Jump to link in the search results.
4. Answer Yes to Did You Make Any Money Outside the United States? and follow the onscreen instructions.

To report foreign earned income and taxes paid on that income using the desktop version of TurboTax Deluxe or higher click the following

• Federal
• Income and Expenses
• Scroll down and click Show More next to Less Common Income
• Click Start next to Foreign Earned Income and Exclusions
• Enter your foreign Earned Income

[jobuzo]

Thank you. This is actually for my daughter. She worked a little in 2022 and 2023 while in university. We need to file returns no matter what even if not in US is my understanding, no matter the amount. We will most likely do on turbo tax, I wanted to have an idea before hand.

[pk]

@jobuzo , good that you are all set.

You are always welcome to ask for more help, should you need that -- we are here to help.