Foreign Income Exclusion - New Immigrant

[ITMFA 241]

7 hours ago, Wuozopo said:

Schedule 1--If your foreign income Line 21 (negative number) is more than the positive numbers for Lines 10-20, then yes Line 22 will be a negative number. Take that negative number on Line 22 and go to the Form 1040 and see Line 6

 

6.Total income. Add lines 1 through 5. Add any amount from Schedule 1, line 22 __________

See the part I put in bold? That's the spot to write in the negative number from Schedule 1

 

Now add up, for example

1 Wages..........30,000.00 (that's both spouses in US plus the foreign)

2b Interest..............45.00

3b Dividends........125.00

4b Pension...............0.00 (Those are if you collect a pension or Soc Security check)

5b Soc Security........0.00

from Line 22.......(12,000.00) a negative number shown by parentheses

Add those up for the total in Line 6

30,000+45+125-12,000= $18,170.00 <------- Line 6 entry in the far right column

 

 

 

Great! Thanks so much  

[Wuozopo 4,293]

20 minutes ago, ITMFA said:

Great! Thanks so much  

If you have any of those deductions on the second part of Schedule 1 (lines 23-33) such as an IRA contribution, student loan,.... then you get to further reduce the income shown on line 6. Subtract those extra deductions from the Total Income Line 6 figure and put the new lower/reduced amount in Line 7. 

 

[ITMFA 241]

8 minutes ago, Wuozopo said:

If you have any of those deductions on the second part of Schedule 1 (lines 23-33) such as an IRA contribution, student loan,.... then you get to further reduce the income shown on line 6. Subtract those extra deductions from the Total Income Line 6 figure and put the new lower/reduced amount in Line 7. 

 

I forgot to mention that my foreign income is all self-employed (as a freelance musician). Is it still correct to add my income on the "wages" line? My husband had gone through a tax software program that doesn't support the foreign income exclusion, so we're trying again this evening using Tax Act. (p.s. you're from England! I'm a dual citizen and spent the first 11 years of my life there  )