# complicated tax situation



## calebpinter (Feb 20, 2017)

Hello,

I lived in Bolivia for about a year and half with a 6 week break in the middle. During my time in Bolivia, I worked in an orphanage and I received a salary of about 1500$. I came back to the US in May of 2016 and got a job so now I need to file taxes for 2016. I received a W2 for my time in Bolivia because my salary was provided through a US based non-profit organization. I am wondering what the best way to handle my taxes would be. I was looking into filing a 2555 but I'm not sure if I can because I wasn't living in the country for 330 days in a 12 month consecutive period due to my six week break in the middle of my work. If I don't file a a 2555, I assume I'd just list my w-2 as normal but what confuses me is the w-2 I received has state wages listed but the non-profit has no state employer id listed since everyone who receives a w-2 from them works overseas. I guess at the end of it all I'm wondering a) if I can file a 2555 and b) do I just leave state wages blank since my "employer" has no state ID number?

Thanks


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## Moulard (Feb 3, 2017)

You meet the physical presence test if you are physically present in a foreign country or countries 330 full days during a period of 12 consecutive months. The 330 days don’t have to be consecutive.

There is a waiver if you had to leave because of war or civil unrest, but it sounds like that was not the case.

It doesn't sound like you qualify for the foreign earned income exclusion.

Can't help you on the state wages part. But bear in mind that people like me never have a W-2, I expect that leaving it blank is correct.


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## Moulard (Feb 3, 2017)

Sorry... waited too long and can't edit my original response... and then got stuck doing other stuff...

Potentially, you might meet a Bone Fide Residence Test. 

If you arrived in Bolivia before 1 January 2015 (which is likely given you said you were there a year and a half). 

According to Pub 54 ...

Questions of bona fide residence are determined according to each individual case, taking into account factors such as your intention, the purpose of your trip, and the nature and length of your stay abroad.

To meet the bona fide residence test, you must show the IRS that you have been a bona 
fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.

Now... could be used to show that if the IRS requested it?... I would think things like an employment contract or rental lease that covers all of 2015 would be a good start.

If that is the case, and you meet it for 2015, then you have options for part year residence in 2016.

Take a look at Pub 54 its got a bunch of examples... see if one fits your circumstances.


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## iota2014 (Jul 30, 2015)

calebpinter said:


> I lived in Bolivia for about a year and half with a 6 week break in the middle. During my time in Bolivia, I worked in an orphanage and I received a salary of about 1500$. I came back to the US in May of 2016 and got a job so now I need to file taxes for 2016. I received a W2 for my time in Bolivia because my salary was provided through a US based non-profit organization. I am wondering what the best way to handle my taxes would be. I was looking into filing a 2555 but I'm not sure if I can because I wasn't living in the country for 330 days in a 12 month consecutive period due to my six week break in the middle of my work. If I don't file a a 2555, I assume I'd just list my w-2 as normal but what confuses me is the w-2 I received has state wages listed but the non-profit has no state employer id listed since everyone who receives a w-2 from them works overseas. I guess at the end of it all I'm wondering a) if I can file a 2555 and b) do I just leave state wages blank since my "employer" has no state ID number?


Could you not just ring up or email the non-profit and ask them? If all their employees work overseas they must know how the income should be treated for tax purposes.


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## Bevdeforges (Nov 16, 2007)

Take a good hard look at Publication 54 to see if you can take the FEIE or not. The fact that you got a W-2 from a US employer may complicate your situation.

But the 330 day thing applies to any period of 12 consecutive months. The usual way to handle something like your 6 week vacation is to consider the 12 consecutive months up to your vacation, and then the 12 consecutive months immediately after that. (You said you'd been working for a year an a half, so there's a decent chance you'll qualify for the physical presence thing for at least part of that time.) Pub. 54 includes an example of how the split year thing works.

In any event, what address is the employer using for your state withholding? The state withholding is supposed to relate to YOUR state of residence, not that of your employer. Were you maintaining your US residence during your absence? (And, for example, if you were using an address in a state like Florida, with no state income tax, they wouldn't have withheld anything.) Some states don't recognize the FEIE anyhow, so you may well be expected to file a state return even though you were outside the US "temporarily."
Cheers,
Bev


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## Bevdeforges (Nov 16, 2007)

fascpa said:


> Hello how are you? No you cannot claim 2555 form FEIE. You must report your wages as self employed schedule C because employer has no tax ID.
> 
> Regards,
> 
> Fulton


You do not need a W-2 nor an employer ID number to report salary from a foreign employer as "salary and wages."
Cheers,
Bev


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## Moulard (Feb 3, 2017)

Except of course that the OP's employer is US based non-profit organization not a foreign employer... but that difference is moot.

With the exception of US Government employees, any US tax payer can take the foreign earned income exclusion if they qualify (primarily the tax home test and either physical presence or bonafide resident test).

For what its worth, even if you are truly self employed and have to File what ever it is that the self employed must submit, so long as they meet the qualification requirements they can still take a foreign earned income exclusion.


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