If you are a US citizen or resident who earned income in another country in 2014, you will have to report this income on your tax return this year. This includes money earned from working abroad, foreign trusts, and foreign bank and securities accounts. When it comes time to report this income, consider the following tips:
- Compile the Necessary Forms: Depending on your particular circumstances, you may need Schedule B, Form-8938, and Form 114.
- Look Over the Foreign Earned Income Inclusion: If you were living and working abroad, you may qualify for an exclusion for all or part of the income you earned. This can apply to as much as $99,200 worth of wages and other foreign income. See Form 2555 and Form 2555-EZ for further details.
- Look for Credits and Deductions: If you paid income taxes to a foreign country, you may be able to claim a credit or deduction on your US taxes if both countries are taxing the same income.
- Get Help: You can find many useful resources on the IRS website. Should you require any additional help, please contact Seattle CPA Alisa Na during normal business hours.