# Simple Question Regarding Forms 2555/1040



## cowface (Feb 25, 2021)

Hello All, 

I am an expat using form 2555 for the first time. Luckily, all of my income is exempt. My question is: How do I include the exempt income listed at the end of form 2555 on the 1040?

-Do I list it on Line 1 as Wages and also include it in parenthesis on Line 8 (negative amount)? This would give a total of -0- for Line 15. Correct?

or

-Do I list it only in parenthesis on Line 8 and have a negative number for Line 15?

Notes: 
-I have completed form 2555, and my entire income is below the taxable threshold.
-I work for a foreign company, and I was not provided a W-2. This is why I am wondering if I include the income on Line 1.

Thanks in advance for any help with this question. It is greatly apprecited.


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## Moulard (Feb 3, 2017)

Right

You add it as wages on line 1 and then subtract it on the other income line 8. Parenthesis is an accounting shorthand for negative.

Line 8 draws its info from schedule 1 which in turn gets it from Form 2555

All wages, salary etc goes on line 1. No need to attach anything to validate your reported wages

Remember that foreign pension contributions, even if tied to your wages cannot be excluded - so if your employer contributes that can be reported on line 1 or line 8 as a different type of "other income"

So you will have the 1040, Schedule 1 and the 2555, don't forget you will have to file Schedule B even if you have no interest or dividends to report


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## cowface (Feb 25, 2021)

Moulard said:


> Right
> 
> You add it as wages on line 1 and then subtract it on the other income line 8. Parenthesis is an accounting shorthand for negative.
> 
> ...


Thank you very much for the information!


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## cowface (Feb 25, 2021)

Moulard said:


> Right
> 
> You add it as wages on line 1 and then subtract it on the other income line 8. Parenthesis is an accounting shorthand for negative.
> 
> ...


Just to clarify, I have to file a Schedule B with nothing but 0's? I thought the Form 2555 was sufficient for simple foreign income under the taxation threshold?


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## Moulard (Feb 3, 2017)

I assume that you have foreign financial accounts in which those foreign wages are deposited. If yes, then you need to complete Part III of Schedule B.


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## cowface (Feb 25, 2021)

Moulard said:


> I assume that you have foreign financial accounts in which those foreign wages are deposited. If yes, then you need to complete Part III of Schedule B.


Hi Moulard. Thank you again for the help. I have one more question:

I have completed Schedule B(Form 1040), but I am unsure if I must also complete FinCEN Form 114. My foreign account is not in excess of $10k, nor has it at any point. At present, I make just enough to get by, so at the end of the month, I average less than $500.

Can you please clarify if I have to fill and file FinCEN Form 114?

Thanks again!


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## Moulard (Feb 3, 2017)

The $10k is the aggreate value across all the foreign financial accounts in which you have a financial interest or signatory authority.... not just each one individually. So $6k in a pension trust fund, $4k in a personal bank account and $100 in a club bank account where you have signatory authority on the account (say because you are the treasurer of the club) would then technically require all three accounts to be reported


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## cowface (Feb 25, 2021)

Moulard said:


> The $10k is the aggreate value across all the foreign financial accounts in which you have a financial interest or signatory authority.... not just each one individually. So $6k in a pension trust fund, $4k in a personal bank account and $100 in a club bank account where you have signatory authority on the account (say because you are the treasurer of the club) would then technically require all three accounts to be reported


I only have the one account, and the total is significantly less than $10k.

Does this require a FinCEN Form 114?


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## Moulard (Feb 3, 2017)

cowface said:


> I only have the one account, and the total is significantly less than $10k.
> 
> Does this require a FinCEN Form 114?


No. You only have to file the FBAR once the aggregate value of all of your foreign accounts exceeds $10k USD.


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