# Questions regarding 1040 / streamline (first time filing)



## Andy_81 (Apr 12, 2018)

Dear expat forum community,
first, I wanted to thank you all. I always have the tendency of pesimistic over-thinking. When I recoginzed that I had to be filing tax returns already years ago, I kind of panicked. When googling about this issue, the advise on the countless expat-tax-attorney-websites raised even more concerns. This forum was the only place that helped to reflect on the situation and gave me the ease to try to do my own tax return.

My situation is as follows: I was born in the USA but I am living in Germany since I was an infant (I have no financial assets or anything in the US). I recently noticed, that I had to file US tax returns since 2014 because my salary is above threshold. I am planning on doing the streamline process (1040s + FBARs + non-willfull-conduct form). Therefore I am preparing my first 1040 and it raises some questions.

I had a salary of about 55,000 $ by my German employer, who can’t send me a W2 form (do I have to get some sort of alternative form?). By stock trading, I made an additional 70 $ in ordinary dividends and 700$ in capital Gain (about half short term, half long term gains – I can’t get the 1099 forms from my bank which only recently became aware of my US citizenship so I declared everything via Schedule B, D and Form 8949). Due to FEIE I can exclude my full salary. My total income on Line 22 is 770$.. This is also my adjusted gross income on line 37. Due to standard deduction, the taxable income on Line 43 becomes 0$. Does this sound correct so far?

Now I had a hard time figuring out, which tax Worksheet applies to me. Since I do FEIE, I figured I have to do the “Foreign Earned Income Tax Worksheet”. On that, it says “If Form 1040, line 43, is zero, don’t complete this worksheet.” does this mean I am already finished and line 44 is zero? I couldn’t find any other tax worksheet that might apply so I finished it anyway and came out with line 44 to be zero. From there on, every other line turned out to be zero (As I undertand it, the foreign tax credit for is not mandatory and in my case filing it wouldn't change anything). It seems a bit strange to me. Is there something that I might double check? Something that an expat doing streamline usually has to report when doing 1040?

Again, many thanks,
Andy


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## Bevdeforges (Nov 16, 2007)

It sounds like you filled out the forms perfectly well. By my definition, as long as the result came in at $0 - but what you say you've done fits in perfectly with what I did for some 20 years while I was employed. (Am now retired and my US tax situation is a bit different.)

But there is no substitute W-2 or 1099 document. Those are only from US sources. They have to take your word for anything you report that comes from outside the US.

In your circumstances, I'd think again about whether or not you need or want to file. Once you're on the IRS radar you may wind up "having" to file going forward. If you plan on someday making use of your US citizenship (say, to move to the US) then fine. But at this time the IRS does not have the resources to pursue "accidentals" like yourself and it is unlikely to be able to do so anytime in the foreseeable future. Plus, they don't really "review" returns like yours - which clearly indicate that there is no tax due and no circumstances where you "might" be hiding something.

Cheers,
Bev


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## Nononymous (Jul 12, 2011)

I agree with Bev. Why are you filing, other than some innate sense that one must obey all possible laws? If you have plans of moving to the US soon then there's good reasons to become compliant, otherwise why bother? Best to simply stay off the radar. Have you applied for a US passport or SSN?

Are your banks aware of your US citizenship? If so, you could face restrictions on some types of investment services, and FATCA reporting of your accounts. If they are not aware, you want to keep it that way - do not tell them that you are a US citizen, if asked. That may be difficult if they check your birthplace, however.


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