Do I report foreign income on U.S. taxes?

[Katzlat 0]

I was under the impression that my 2024 Canadian income did not have to be reported to the IRS because it was earned before I crossed the border with the visa and before we were married, and because I was filing with CRA. Is this true? I moved to the U.S. April 8th 2024 and got my green card in September. I have also worked for U.S. companies since moving here 

[OldUser 8,489]

All of your foreign income is reportable starting April 8, 2024 if that's when you entered on immigrant's visa such as CR-1.

Edited Thursday at 05:28 PM by OldUser

[Crazy Cat 42,982]

12 minutes ago, Katzlat said:

I was under the impression that my 2024 Canadian income did not have to be reported to the IRS because it was earned before I crossed the border with the visa and before we were married, and because I was filing with CRA. Is this true? I moved to the U.S. April 8th 2024 and got my green card in September. I have also worked for U.S. companies since moving here 

If you filed a MARRIED-FILING JOINTLY return, the entire year's world-wide income must be reported for both spouses.

Edited Thursday at 05:35 PM by Crazy Cat

[OldUser 8,489]

6 minutes ago, Crazy Cat said:

If you filed a MARRIED-FILING JOINTLY return, the entire year's world-wide income must be reported for both spouses.

Good point

[Crazy Cat 42,982]

7 minutes ago, OldUser said:

Good point

I think that might be the most common reason OP saw that some people reported the foreign income while others did not. 

Edited Thursday at 05:42 PM by Crazy Cat

[JeanneAdil 6,781]

tax treaty with Canada has u paying the income tax to Canada

 

You report it but file form 2555 to exclude the allowed amount

 

For tax year 2024, the maximum exclusion is $126,500 per person. If two individuals are married, and both work abroad and meet either the bona fide residence test or the physical presence test, each one can choose the foreign earned income exclusion. Together, they can exclude as much as $253,000 for the 2024 tax year.

 

https://www.irs.gov/pub/irs-pdf/f2555.pdf

[Katzlat 0]

10 hours ago, OldUser said:

All of your foreign income is reportable starting April 8, 2024 if that's when you entered on immigrant's visa such as CR-1.

 Any recommendations on how I can file online myself? I have tried turbo tax but found it confusing when getting to the foreign stuff 😭

[OldUser 8,489]

23 minutes ago, Katzlat said:

 Any recommendations on how I can file online myself? I have tried turbo tax but found it confusing when getting to the foreign stuff 😭

I feel you! Turbotax and Sprintax are the ones allowing you to file online with relative ease. US tax system is very complex. You may even want to see a CPA for this year if you're not confident about filing correctly yourself. This year I spent about 3 hrs total in Turbotax. And my taxes are somewhat simple with no foreign income. It's just the way it is...

[hplusj 299]

4 hours ago, Katzlat said:

 Any recommendations on how I can file online myself? I have tried turbo tax but found it confusing when getting to the foreign stuff 😭

We ended up going with H&R Block due to the complexity of it; I've been doing my own taxes for years, but 2024 was humbling to say the least, given that Jon had foreign income before arriving AND after his EAD, not to mention I moved states and positions.

 

The cost of hiring a CPA offset our marriage tax credit sadly, but we wanted it done right.  Future years will be much easier to manage.

[P055UM 297]

6 hours ago, Katzlat said:

 Any recommendations on how I can file online myself? I have tried turbo tax but found it confusing when getting to the foreign stuff 😭

I’d use a CPA this year. Turbo tax is sketchy for first year stuff, and foreign income stuff. 
 

Btw, I’m not a CPA, but if you do DIY, I believe form 2555 (FEIE) is prorated to the days you were out of the country, in your case around 25%.

[Crazy Cat 42,982]

7 hours ago, Katzlat said:

 Any recommendations on how I can file online myself? I have tried turbo tax but found it confusing when getting to the foreign stuff 😭

I would suggest finding a knowledgeable tax pro for first year filing. Look for someone who knows foreign income, FBAR requirements, and foreign income exclusion.

[Crazy Cat 42,982]

7 hours ago, Katzlat said:

 Any recommendations on how I can file online myself? I have tried turbo tax but found it confusing when getting to the foreign stuff 😭

Are you trying to file as Married-Filing Jointly?  If so, you have to report income for the entire year, but you might be able to exclude some of the foreign income.

Edited Friday at 11:18 AM by Crazy Cat

[alliejourney 82]

3 hours ago, hplusj said:

We ended up going with H&R Block due to the complexity of it; I've been doing my own taxes for years, but 2024 was humbling to say the least, given that Jon had foreign income before arriving AND after his EAD, not to mention I moved states and positions.

 

The cost of hiring a CPA offset our marriage tax credit sadly, but we wanted it done right.  Future years will be much easier to manage.

Same here. We went to H&R Block as well. It was just over $300 for us, which was about what we got in a state tax return so that offset it, and I was just happy with the peace of mind that it had been done correctly. 

 

OP, my husband is from the UK who I believe has a similar tax treaty with the US as Canada. I don't know all the technical stuff that happened but the tax guy included a letter that we both signed and we had to file paper - I believe it was a statement about why we could exclude my husband's foreign income, but I don't remember. IMO doing it through a service or a tax pro is the way to go in this first year when things are confusing.

[JeanneAdil 6,781]

10 hours ago, Katzlat said:

 Any recommendations on how I can file online myself? I have tried turbo tax but found it confusing when getting to the foreign stuff 😭

these sites don't have the 2555 form

just print it out and file by paper berfore 4/15/2025