Will I get a reimbursement if I upgrade service to ask a question that might be causing a system glitch on their end?

Forum|Forum|1 year ago
February 18, 2025
1 reply
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I work on a US military base overseas as a DoD employee, and my wife works for a foreign company. I know my income is not Foreign Income but my wife's is. It shows hers as Foreign Earned Income Exclusion up to the review. At the review, I am showing either my income(w-2) or 0 and I have to correct it but I believe that I entered everything correctly. I cant get through to file. I need their assistance and am thinking to upgrade my service but if this is causing by their system glitch, I don't think I want to pay extra. (I am not in the high tax bracket and it shows as I get a refund)

pk12_2

Employee

@kiyomi-peach

(a) assuming that you are using a windows download version of the product ( because I am not familiar with the on-line version );

(b) You a US person stationed abroad with DoD -- thus your income is US sourced and taxed accordingly

(c) Your spouse -- is she a US person ( citizen / GreenCard) ? Is she at your tax home ? Which country is her earnings from ?

(d) if spouse is not local ( i.e. she has always lived there and is a citizen of that country ), then when dis she enter that country ( Tax Home start date )

I will circle back once I hear from you. If you are using the On-line product ( my question s will still need to be answered ) I will page another expert to help you.

Is there more I can do for you in the meantime ?

kiyomi-peachAuthor

(a) assuming that you are using a windows download version of the product ( because I am not familiar with the on-line version );

-Yes I'm using the online website

(b) You a US person stationed abroad with DoD -- thus your income is US sourced and taxed accordingly

-Correct

(c) Your spouse -- is she a US person ( citizen / GreenCard) ? Is she at your tax home ? Which country is her earnings from ?

-She is not a US citizen, lived in the states with GC, No we are both living in Japan, She is a Japanese citizen earning from Japan

(d) if spouse is not local ( i.e. she has always lived there and is a citizen of that country ), then when dis she enter that country ( Tax Home start date )

-We both moved back to Japan in 2016. I believe she is entitled as a permanent resident in the state for Tax Purpose.

Thank you, Champ pk!

pk12_2

Employee

@kiyomi-peach , my apologies for delay in responding.

(a) My struggle has been how to answer if you will benefit tax liability wise with a higher level of service ( from TurboTax). My understanding here is that TurboTax services ( whether in answering your queries directly/live or prepare the return for you etc. ) ONLY assures you that your return has been correctly prepared and based on information you have/do provided/ provide. Higher functionality products help you in preparing a correct return. I am not aware of any TurboTax service will assure you that you get a larger refund or lower tax liability. So I am at a loss on how to answer this query.

You said that you both move to Japan in 2016. So how have you been filing your joint return ? Or is it that your wife started earning in Japan only for 2024 and therefore the questions ?

(b) As I said in an earlier post and based on your responses --

1. You need to enter your W-2 as per usual -- just as if you were in the US ( since you are working for and paid by DoD ).

2. For your wife, you do NOT enter her income under wages . You need to go down the list of personal incomes ( On my windows product I get there by selecting "I will choose what I work on "-- under personal income tab) till you see "Foreign Earned Income and Exclusion ". Select that and follow through the next few screens --- . This fill out the form 2555 ( to qualify your wife for physical presence test. ).

3. Once your wife's Foreign Source income has been excluded , you be getting the most tax beneficial outcome.

I have , in other post have covered this -- how to exclude Foreign Earned In come. But would be happy to walk you through this process.

Note -- (a) I am not familiar with the On-line version of TurboTax and so I will have to get another expert ( familiar with the On-line product to help on the specifics ).

(b) Even though all her foreign income is excluded from US taxes, your marginal tax rate is computed as if her income was included ( this is the this works per the IRS rules and regs. ), but this is a better path ( tax liability wise ) then trying to use Foreign Tax credit ( for the taxes she pays to Japan ).

Is there more I can do for you ?

Sorry , I cannot advise you on cost/benefit vis-a-vis usage of TurboTax services ( Full Disclosure : I have no beneficial -- financial or otherwise connection with TurboTax , Intuit, Lacerte, Pro Tax etc. -- just a volunteer).