Form 2555 foreign earned income

Forum|Forum|3 years ago
February 28, 2023
2 replies
11 views

dilemma - trying to Prepare tax return for client who lived in Japan for all of 2022 working for us based companies. trying to use foreign income exclusion

1. if I do not enter the W-2 on form 2555 income then no exlusion

2. if I do not enter wages on traditional w-2 page then error messages saying no income return must be filed on paper

3. if I enter on both then program doubles income

HELP I am pulling my hair out

ProConnect Tax

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gskidtax

Level 2

Try deleting the W-2 input page. On W-2 input screen, right click on the screen, then click on remove page...

Then go back to 2555 and enter W-2 earnings...

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allisonsAuthor

Level 3

Please refer to #2 - if the wages are not entered on the W-2 page then I get 7 critical diagnostics and it says file return on paper with client in Japan

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gskidtax

Level 2

Did you delete the input screen for the W-2? What errors are you seeing?

rbynaker

Level 13

There's a "business rule" from the IRS that says you can't efile if you don't have a laundry list of things, one of which is non-excluded income. Isn't there a Wells Fargo account somewhere that earned $0.17 of interest? Round up to $1 and put it on Sch B. Or what about that $1 they won on a scratch-off lottery ticket, that's income.

Let us know if you're not good to go with $1 of other income somewhere.