Whether you’re an experienced do-it-yourselfer or doing your own taxes for the first time, this is your place to learn and share. Here you’ll find information and resources for using H&R Block’s online and software DIY solutions. You’ll also find links to more information to assist you on your DIY journey.
04-02-2017 03:51 AM
Not sure if this is helpful, but I just did as you suggested by adding the foreign income as not reported on W2, claimed the exception on form 2555 (where I also added my interest and cap gains on the addtl. income not yet listed). Then I suddenly had a balance due. I took a look at my return - which required me to just about file it - and noticed I got an ACA penalty of 2k added. So I went back to that form, applied for the exception of living abroad and then the penalty was gone and my balance back to zero.
Now I just need to figure out how to fix the negative income, I think I need to add schedule D and B, which then the income will be wiped out with the credit. What a pain for sources of income that are not taxable in the states per the treaty anyway.
04-02-2017 03:53 AM
and on a final note - I didn't like how I can only add one family member on 2555, made me feel like the balance due was because of that. A look at the 1040 would have fixed that suspicion immediately, but that's not available until you file the return.
04-08-2017 02:38 AM
This is my very first time with tax software.
My husband has always done our taxes by hand. He is not able this year.
Was wrestling with the foreign earned income exclusion "bug" til 2 am.
Am working with the online version.
When I get through all the questions and fields to fill in a 2555, H&RB just starts with another 2555.
If I try to phone the help phone from France, I get a recording from the French fire department.
I am almost ready to chalk off the hours spent on H&RB and start over with TurboTax.
04-19-2017 09:36 AM
Finally got the thing submitted after combining all the above advice and fiddling with the forms. I ended up deleting all the forms, just adding the Foreign Earned Income Exclusion (Form 2555), but leaving the first box blank and only putting my income in services provided box, and deleting any mileage deductions or any other field which increased the deduction claim. I am really unimpressed with H&R Block's system - I expected more from them. I had tried to complete with TaxSlayer which is much more straightforward but they were trying to charge me $22 to do the "free file" - don't understand what is up with these systems but the tax return was accepted, so I am done now.
Hope you guys have better luck!
05-16-2018 10:58 AM
This does not help in my case.
My income is well below the 2017 IRS exclusion limit of $102,100. Say, my income is $X.
Now, if I follow your step and enter my foreign earned income $X in "Foreign Income Not Shown on W-2", it gives me a negative debt on federal. That mean that I owe IRS tax. I believe that it should show 0 instead of a negative number.
Please advise further.
05-17-2018 12:23 AM
Hi, the software has changed at least 2 times since I wrote that. It seems every year there is something a little different. But the thing to remember that has always been the case so far, is to complete 3 items:
-form 2555 / 2555EZ, and
-"Foreign Earned Income / Compensation / Wages not shown on a W2", and
The 2555 (Foreign Income Exclusion) and the Foreign Earned Income complement each other. One of them describes what you earned and the other one describes what is excluded from what you earned. These forms are located in the Income section. Don't try to complete a regular W2. Filling these 2 out will result in a 1040, and 2555 / 2555EZ, at least for me.
The 1116 declares the foreign taxes you paid, in the Credit section, otherwise known as the Foreign Tax Credit.
05-17-2018 09:27 PM
You need to be aware that you can NOT claim BOTH the foreign earned income exclusion and the foreign tax credit on the same income. So you'll need to fill out ONLY Form 2555/2555 OR Form 1116, but NOT BOTH. (Unless you have a situation like one where you're filing jointly and one spouse is claiming the foreign earned income exclusion on their income and the other is claiming the foreign tax credit for their income.)