# US tax form - help on FEIE reporting



## Nightsoad (May 30, 2012)

Dear all, 

I'm a US citizen and have been expatriate in France for now 30 years. Let me say I have almost never lived in the US (from the age of 0 to 3)  
Every year comes that time when we have to prepare uS tax forms. I just discovered the new "simplified" forms and feel a little bit confused about how to report my Foreign Earned Income Exclusion with form 2555-EZ. 

Here is what I understood but I would like to check my understanding is correct. 

*Form 1040*: 
Line 1, I report my french income _(from 2555-EZ instructions § "WHO QUALIFIES" : "Your total foreign earned income received in 2018 is reported on Form 1040, line 1")_

*Form 1040 schedule 1* : 
Line 21 : I enter my foreign income as a negative amount _(from form 2555-EZ line 18 : "Foreign earned income exclusion. Enter the smaller of line 16 or line 17 here and in parentheses on Schedule 1 (Form 1040), line 21. Next to the amount, enter “2555-EZ.” On Schedule 1(Form 1040), subtract this amount from your additional income to arrive at the amount reported on Schedule 1 (Form 1040), line 22"_

Line 22 : since I have no other income, combination is negative and equal to my foreign earned income _("If you don’t have any adjustments to income, enter here and include on Form 1040, line ")_

*Back on form 1040* :

Line 6 (left side) : I report negative amount from 1040s1 line 22 and combine it with line 1 making it 0 (I work 365 days/365 in France every year and earn less than the Maximum FEIE amount ($103,900.00)). 

==> Is this way of reporting correct or do I misunderstand anything ? 

Many thanks in advance for your feedbacks !

Cheers


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## Bevdeforges (Nov 16, 2007)

Sounds about right to me. The new, shorter 1040 forms have thrown everyone for a loop this year. But the basic concept is still the same: report your salary income, then report your FEIE from form 2555-EZ on the line they tell you to, but in parentheses (indicating a negative number). If the net result is then -0- and eliminates your earned income, then it must be right!


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## Nightsoad (May 30, 2012)

Hi Bev, 

One additional doubt I have... I must fill the FBAR form and hence, I will attach form 1040 schedule B. I usely not do it but I'm still wondering. Are interests owned in France on "Livret A", "LDD" or "PEL" supposed to be declared on it and hence considered as taxable interests on US tax report ? 

I never did before but made the exercice and if i do add them on schedule B, and supposing I'm doing the right calculations according to the"Foreign Earned Income Tax Worksheet", I would owe something like $64 for not much more than $211 earned on French non taxable interests from French point of view... 

Thanks again !


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## Moulard (Feb 3, 2017)

If your earned income all being excluded as it is below the maximum FEIE amount, and your remaining income is less than the standard deduction, you should end up owing no tax.


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## Nightsoad (May 30, 2012)

Hi Moulard, 

Thanks, you're right, with the standard deduction I had not paid attention to, it would make it to 0. 

But theoretically, are these not taxable interests on French side taxable on the US side which would mean, even if deductable, I would have to state them on 1040 schedule B ?


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## Bevdeforges (Nov 16, 2007)

Nightsoad said:


> Hi Moulard,
> 
> Thanks, you're right, with the standard deduction I had not paid attention to, it would make it to 0.
> 
> But theoretically, are these not taxable interests on French side taxable on the US side which would mean, even if deductable, I would have to state them on 1040 schedule B ?


Technically speaking, ALL interest, including from "tax free" foreign accounts is taxable on the US side. However, the bilateral agreement on FATCA specifically excludes the banks' obligation to report these tax free accounts. What you choose to do with this information is up to you.

And, in any event, you have no obligation to detail your interest income on Schedule B until and unless the interest exceeds $1500 (I think is the figure).


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## Nightsoad (May 30, 2012)

Hi Bev i had noticed this $1500 threshold on schedule B instructions but was not sure. Not worth the hassle then 

Thank you !


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