# Do I need to file Schedule C? (US taxes)



## 206inUK (Mar 3, 2012)

After losing the last bit of our expat package, hubby & I are looking at rates for a CPA to prepare our US tax return. We are in the UK and I started working as a freelance fitness instructor at the end of last year. It is very part time (income less than$1K last year), but I am registered as self-employed here in the UK. Does anyone know if I have to file Schedule C now? I am seeing that as a significant extra cost with CPA/expat tax firms - almost to the point of cancelling out any financial gain.

Thanks for any help and/or advice.


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## Bevdeforges (Nov 16, 2007)

First of all, if you want someone to file your US taxes, look into using an EA (enrolled agent). Normally they are a bit less pricey than a CPA. NAEA | Powering America's Tax Experts is the professional association for enrolled agents that explains their qualification. Click on "Find an EA" and enter UK for the country and you should find a few EA's located there.

Or, download Pub 54 from the IRS website and you may well be able to do it for yourself.

As long as your total revenue (before any deductions) is less than the exclusion cap (currently about $95K) you should be able to simply declare your "foreign earned income", simply exclude it using form 2555 (or 2555EZ, if you prefer) and avoid the whole Schedule C nonsense.
Cheers,
Bev


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## 206inUK (Mar 3, 2012)

Bevdeforges said:


> As long as your total revenue (before any deductions) is less than the exclusion cap (currently about $95K) you should be able to simply declare your "foreign earned income", simply exclude it using form 2555 (or 2555EZ, if you prefer) and avoid the whole Schedule C nonsense.
> Cheers,
> Bev


Thanks for such a quick response. Would the total revenue include my other half's income? He is not self-employed, and is himself over the cap.


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## Bevdeforges (Nov 16, 2007)

If both of you have to file with the US, each of you fills out a separate 2555 and can receive up to the cap as "exclusion" - Whatever is left over from hubby's pay will have to be dealt with through foreign tax credits (i.e. tax credit in the amount of the income tax you pay to the country where you're living).
Cheers,
Bev


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