# Accidentally filed form 1116 and 2225



## scaj2019 (9 mo ago)

Hi all, 

I am panicking and a bit baffled. Trying my luck in a few places in the hopes that someone can help...

I have always filed using FEIE as I only have one income stream, from wages. But I have just realized that in 2020 TurboTax filed both the foreign Earned Income Inclusion 2555 and Foreign Tax Credit 1116 for some reason. (I have always had someone else do my taxes for me and didn't properly understand, a huge mistake, I know). 

I didn't receive any credit on the actual form 1116 as far as I can tell (standard deduction and gross income from all sources are listed in the left column on page 1, but total says 0 for deductions and losses, and no foreign taxes paid in part II are listed either) so thought it wouldn't matter. 

2555 was fully filled out and FEIE was definitely taken on the same income. 

What worries me is that I somehow received the Advance Child Tax Credit and don't know how that could have happened if the Foreign Tax Credit wasn't applied, given you weren't supposed to get it with income excluded on FEIE, as all of my income was. I was surprised to get it at the time and wondered why...(I'm having to pay it back on 2021 return, but I assumed it was because I don't qualify given I have lived outside the US all year).

Can anyone advise on whether I can file just FEIE this year? I'm worried that if I accidentally took both last year without realizing, then I might have to amend my return? 

Would appreciate any help and yes I do know how dumb it is that I didn't know both forms were filed....thanks for anyone who can advise, I'd really appreciate it.


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## Bevdeforges (Nov 16, 2007)

If you got 0 tax credit from your inadvertent filing of a form 1116, then I suspect they will just ignore the "extra" form you filed. If there is a problem, they'll be in touch - but possibly not for "several" years given how backlogged they are just trying to process 2020 returns. I would bet, in any event, that it all just blows over with no need to contact you at all.

And by the way (sorry, I just can't resist) - the 2555 form is for "Foreign Earned Income EXclusion" - not "inclusion." Probably just a typo but it just struck me as a funny one.


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## scaj2019 (9 mo ago)

Thank you so much for replying, Bev. I was hoping you would! 

I guess I assumed I got credit from my filing of 1116 because I ended up receiving the Advanced Child Tax Credit, as I read that those who use FEIE are not eligible. Or are people receiving it anyway even if they shouldn’t?

One last question - do you think I can file using the foreign earned income EXCLUSION (ha) this year? As I did last year so wouldn’t have revoked it accidentally by filing 1116 too?


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## Bevdeforges (Nov 16, 2007)

As far as I know, there were two parts to that Advanced Child Tax Credit - one was "refundable" and the other wasn't. I'd just assume that what you got was the "refundable" part and wait to hear differently from the IRS or anyone else.

And to answer your second question, you filed the FEIE last year and got 0 as a tax credit on the FTC, so I don't see that you revoked anything. Again, if the IRS has a problem with what you do, they'll be in touch. Though it's rare that they bother contacting anyone overseas unless they have made an error involving really LARGE amounts of tax potentially due.

If it makes you feel any better, the pandemic payments (EIP = Economic Impact Payment) were made to a large number of folks overseas who potentially probably shouldn't have received them - at least not based on the information published in the US press. Most folks I know in this situation just cashed the checks and ran. No one has yet heard anything about it from the IRS and is very unlikely to hear anything in the future, either.


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## scaj2019 (9 mo ago)

Hi Bev, so sorry - me again. 

I just looked back at the return and the Standard Deduction is listed on the first page of my 1040.

Is this wrong if I also filed 2555? My gross income last year was >30K so I didn’t even come close to going over the threshold. 

That means I took the standard deduction on the same income I exluded, right?

But does it matter if it’s still 0 for total credits on the worksheet? I got a small refund but it says it was for relief payment…


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## Bevdeforges (Nov 16, 2007)

As long as the "tax due" line comes out to $0 it really, truly doesn't matter. Any way you would have done the forms the answer is the same and you don't owe anybody anything. Go in peace and don't look back. You can always do it right by the book the next time (again, as long as the bottom line comes out to $0 you're done.


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## scaj2019 (9 mo ago)

Thanks so much for your help, Bev! Really appreciate your very patient replies!


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