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March 5, 2020
Question

Which software should I use for living abroad by using F2555?

  • March 5, 2020
  • 2 replies
  • 0 views

I'm a bona fide resident of a foreign country (living for more than 12 months), I'm a self employed consultant for a commission based project . I need report tax by using F1040 and F2555. Which tax software edition does I need to us? Thanks.

    2 replies

    Employee
    March 5, 2020

    @Smilecloud17 , my personal favorite is the Home & Business desktop version. This  covers all the way to complicated returns  such as self-emplyoment / sole proprietor scenarios and also foreign earned income exclusion / foreign tax credit.  I like the desktop version because it allows me to see the forms  as these are being filled  and the underlying worksheets ( in the forms mode ) and everything stays on my machine for future usage and/or carryover to next year.

    Yes you will need to file  form 1040 and form 2555 ( for qualifying  to exclude  foreign earned income.  Note that Bona-Fide Resident is only on approval by the IRS.  Most expats easily qualify  for Physical Presence Test ( 330 days abroad during any continuous test period of 12 months/365 days).  Also note that while Schedule-C would be used to report your self-employment income, you will use the Schedule-SE to compute and pay self-employment taxes   ( equivalent of FICA for wage earners ).

     

    Does this answer  your query?   I have assumed here that you are a US citizen/Resident ( Green Card )

    LeonardS
    March 6, 2020

    You can also use TurboTax Premium to file your self-employment and expenses on Schedule C Profit or Loss from Business and file Form 2555 Foreign Earned Income.

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    Employee
    March 6, 2020

    @LeonardS , ????