I’ve just spent a couple hours online trying to figure out what forms I need to file so the U.S. gov doesn’t come looking for me at some point or I don’t have any problems when/if I return to the U.S. I’ve got nothing but a headache, because I can’t figure out what I need to file.
Maybe it’s just simple. What do most people file? I’ve been here for the full 2003 tax year, worked at two places giving me well below the 80,000 US foreign earned income, with no income from the U.S. But, I do have a bank account here. So, should I file the 1040, 2555-EZ (foreign earned income exclusion), and the file (I can’t find the number) for the interest income on my bank account?
What did people in an average situation here file? Thanks much!
Yes, it does cost money, but I did mine online with turbo tax…it was relatively painless (and I have a fairly complicated situation – freelancer, with US income but not much, two businesses, etc. etc.) I used the “basic” version and I think it cost $29.99. At the end of the process you get a .pdf file with all your forms and worksheets. Just print it out and mail it off (hopefully without a check – but I need to enclose one this year ). Remember you aren’t allowed to file electronically if you live outside the US (thanks SO much, guys…what the HECK is the difference?)
I was always under the impression that 1040EZ was all you need. I doubt that many expats (aside from the expat-package expats) make more than 70,000 US a year, and you therefore probably won’t need to do anything special to get your foreign income excluded. I hope someone (other than the IRS!) will correct me if I’m wrong.
I also used Turbotax. It makes things so easy, that it’s worth the money, as it figures out what forms you need to fill out and such. All you do is answer the questions and fill in the blanks. I think there was a form 2555 or something like that in there.
you need to file a 1040 and 2555…you might be able to file the 2555ez…all the information is on the IRS website…you can’t file the 1040EZ because you have to file the 2555(ez)…if it’s your first tax year here then I think there are a couple of other ‘painless’ forms to file (one asking for the exemption, one asking for an extension (just for the first time), and I think there is also one changing your address)…of course this is coming from someone who hasn’t even made US$20,000 a year since I’ve been here…www.irs.gov
BTW…you can’t just file a 2555EZ…it must be filed with a Form 1040…2555EZ Line 17 "Enter, in US dollars, the total foreign earned income you earned and received in 2003 (see instructions). Be sure to include this amount on FORM 1040, LINE 7…
Line 18 then gives instructions on the Foreign earned income exclusion – the results are then entered on Line 22 of the Form 1040
). Remember you aren’t allowed to file electronically if you live outside the US (thanks SO much, guys…what the HECK is the difference?)