# Need some help with Chilean taxes



## E-Bum (Feb 16, 2014)

Hello all,

I have searched high and low for information about this, but I still feel slightly confused about which tax forms are pertinent to my situation. This will be the first time I am filing taxes for income earned abroad.

My situation:
I worked for a Chilean company, with a residency visa (sujeto a contrato), for 8 months from March to November 2013. In November, I terminated my contract (which had been for an indefinite contract) and I left to Bolivia for month, then back to the United States, where I am now (not going back to Chile). I received a Chilean residency visa valid for 3 years. I made approximately 20k USD equivalent. I have my pay stubs for each month that I worked, including all taxation withheld from my paychecks, but nothing equivalent to a W-2.

I believe the pertinent forms are the 1040 and the 2555. However, I don't know if there is anything else that I must do? How do my pay stubs fit into all this? Am I considered a "bona-fide" resident of the foreign country since I did not stay there for an entire tax year?

Are there any other suggestions that may be of use to me in this situation?

Thank you very much.


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## Bevdeforges (Nov 16, 2007)

Yes, you use the 1040 just like normal - however, since you can't meet either the physical presence test, nor the bona fide resident test, you won't be eligible for the FEIE (i.e. form 2555). If you paid income taxes while you were in Chile, or had them withheld from your pay, you should be able to take the Foreign Tax Credit (form 1116). There is also the alternative of deducting Chilean income taxes paid, though this isn't usually as beneficial.
Cheers,
Bev


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## E-Bum (Feb 16, 2014)

Thank you for the reply Bev.

I guess I may have left out a vital piece of information, as I had deemed it unimportant, and it may help me qualify for the 2555 form.

Although I was not a Chilean resident for the required minimum amount of time, I had been out of the USA since June of 2012, making my total time in South America from June 2012 until November 2013 (more than the 330 uninterrupted days that the physical presence test calls for). During that time was that 8-month work period in Chile.

With that new info, am I correct in assuming that I qualify by the physical presence test?


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## Bevdeforges (Nov 16, 2007)

The 330 days must be during a period of 12 consecutive months, so in your case it would be December 2012 through November 2013 - but if that works out, then go for it.
Cheers,
Bev


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