UCS filling taxes in Spain

[rrobin0609 387]

My mom thinks I know everything about visas of all sorts now so she asked me this at lunch today: my sister moved to Spain in September 2018 (Auxiliares de Conversacion) after having worked in thr US from January to the end of July. Since she is a USC she has to file taxes in the US and since shes working in Spain she has to file them there. She is also planning on doing another year with the program. She'll be back in the states next to renew her visa in July 2019, and be moving back to the US in Summer 2020.

 

Anyone have any advice for me to give my sister? Or at least an idea of where to start? All I could tell my mom is that she'll have to file in both countries.

 

And is this needs to be moved to the tax discussiom board thats fine 😊 just wasnt sure which would br better to put this on.

[TBoneTX 45,288]

Thread is moved to the Tax & Finances forum, in hopes of answers.

[Wuozopo 4,293]

13 hours ago, rrobin0609 said:

My mom thinks I know everything about visas of all sorts now so she asked me this at lunch today: my sister moved to Spain in September 2018 (Auxiliares de Conversacion) after having worked in thr US from January to the end of July. Since she is a USC she has to file taxes in the US and since shes working in Spain she has to file them there. She is also planning on doing another year with the program. She'll be back in the states next to renew her visa in July 2019, and be moving back to the US in Summer 2020.

 

Anyone have any advice for me to give my sister? Or at least an idea of where to start? All I could tell my mom is that she'll have to file in both countries.

 

And is this needs to be moved to the tax discussiom board thats fine 😊 just wasnt sure which would br better to put this on.

 

Your sister has to file her US taxes reporting ALL income earned in 2018 (both in the US and Spain).

 

Because she has a visa to live and work legally in Spain, she is eligible for the Foreign Earned Income Exclusion. The tax form to include with her return is 2555 or the shorter 2555EZ. Her qualification is bonafide resident (because she is legally living and working there). It will exclude her Spanish income from being taxed by the US. It is reported to the IRS, but the tax it would generate is subtracted out before she gets to the final "tax due" line.

 

[Wuozopo 4,293]

Forgot to add:

Next year if all of 2019 is spent working in Spain, she still files with the IRS, reporting the amount earned in Spain, but will end up owing zero to the US when she gets to the bottom line because of using Form 2555 again.

Edited February 25, 2019 by Wuozopo