Job Discussion Forums

Master Shake · Joined: 03 Nov 2006 Posts: 1202 Location: Colorado, USA

The dreaded US tax day, April, 18th, is fast approaching.

My understanding is that, as a US citizen, I have to file but won't have to pay any tax unless I earn over about $90,000/year. Thankfully, as an ESL teacher, I've managed to just squeeze under this limit Wink

The forms I need to file are the 1040 and the 2555EZ.

My question is: If I run a company in Poland, does this affect which forms I fill out or how I declare my earnings?

I was planning to use the 1040 and the 2555EZ.

dynow · Joined: 07 Nov 2006 Posts: 1080

Hey shake,

If you are filing abroad using TurboTax, you don't need to fill out a 2555, you just need to claim your foreign income when you file and it automatically generates an electronic 2555. If you haven't been claiming your foreign earned income in the past, you will need to find the updated version of the 2555 form for each tax year you haven't filed foreign income for (yes, they even update forms from previous years) and submit that along with a tax amendment form (1040X).

If you are not using TurboTax and doing it all by yourself somehow, you'll need the 2555, not the 2555EZ. The 2555 is for self employed filers. You cannot claim self employed income on a 2555EZ.

Here's the link for the pdf of the 2555:

http://www.irs.gov/pub/irs-pdf/i2555.pdf

Under the heading, "Purpose of Form", read the second paragraph. It states:

"You may be able to use Form 2555-EZ, Foreign Earned Income Exclusion, if you did not have any self employment income for the year......"

I'd recommend using TurboTax. Filing your federal income is free this year (some years it's not) but you'll have to upgrade one step higher, I think it's called "Basic", because you need to file foreign income. The free version doesn't have that capability. I believe the upgraded version costs $19.95. If you do it all yourself and need to mail forms out to the IRS, it will cost you just as much, if not more, to send all of it certified mail from Poland. With TurboTax, you file it and within 48 hours you get an email telling you whether the IRS accepted it or not.

maastricht · Joined: 11 Feb 2011 Posts: 38

Master Shake · Joined: 03 Nov 2006 Posts: 1202 Location: Colorado, USA

Thanks, guys.

According to the 2555 instructions, I'm automatically granted a 2 month extension because my 'tax home' is not in the US. (I haven't been back home since 2009!) So there's no rush now.

I may just shell out for turbo tax as you suggested, dynow. It beats pouring over line after line of these tedious instructions...

dynow · Joined: 07 Nov 2006 Posts: 1080

dude, TurboTax is a no brainer. $19.95, out of sight, out of mind.

plus, if they send you an email telling you your tax filing has been accepted, it's their a$$ if something ends up being wrong with it.

maniak · Joined: 06 Feb 2008 Posts: 194

i havent filed in the past 3 (or is it 4) years or something... thanks for the reminder. btw the basic version of turbotax right now runs for 49.95, probably jacked the rates before the deadline. since we have an extension anyways ill wait till it passes and then pick up a copy.

Master Shake · Joined: 03 Nov 2006 Posts: 1202 Location: Colorado, USA

scottie1113 · Joined: 25 Oct 2004 Posts: 375 Location: Gdansk

Basic rule: US citizens and permanent residents are taxed on income worldwide.

True, but unless you earn more than $92,000 outside the US you don't have to pay taxes on it. You are supposed to file with the IRS.

sparks · Joined: 20 Feb 2008 Posts: 632

This is for Dynow (or anyone else who might be able to help an idiot).

Thanks you for the Turbo Tax advice, I think I'm going to get it.

Do you happen to remember how you enter the info that you have been working abroad? I've been playing with the trial version of Delux but can only find info on income that I have earned from foreign accounts-- meaning investments, nothing that really suggests that I work abroad.

Any advice you could give would be appreciated.

dynow · Joined: 07 Nov 2006 Posts: 1080

i remember it just asking if i had any income and i just put it in. hmmm....i can't really picture the menu options or anything. so you're saying you just can't find where to put your earned income?

sparks · Joined: 20 Feb 2008 Posts: 632

Thanks.

No, I was just wondering if there is any part which would indicate that I am filing from abroad and therefore entitled to the tax exemption limit and two month extension. Is this info on there (to the best of your recollection)?

dynow · Joined: 07 Nov 2006 Posts: 1080

It just says "foreign income".

sparks · Joined: 20 Feb 2008 Posts: 632

I was wondering... Is it necessary to send the Pol-tax sheet that you get from your accountant if you own a business along with the 1040 and 2555. I assume that the Pol-tax info. would be the same as a W-2.

What would Jesus do...?

Thanks in advance

scottie1113 · Joined: 25 Oct 2004 Posts: 375 Location: Gdansk

Don't know, as I don't own a business. I send a 1040, 2555-EZ and a copy of my PIT 11 from my school to verify that I earn peanuts in Poland. So far so good.

sparks · Joined: 20 Feb 2008 Posts: 632

Thanks Scottie, I'm not really sure what PIT 11 looks alike but I assume it's in Polish. Do you get it translated? Certified?