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Hello and thank you for using Just Answer
I can not help you prepare your return but I can advise on the SE income and using the Foreign Income Exclusion
That would be great. I appreciate your help!
I will try and start with the basics
The maximum amount of the Foreign Earned Income Exclusion under section 911 of the Internal Revenue Code is now indexed to inflation ($91,400 for 2009, $91,500 for 2010, $92,900 for 2011). In addition, Section 515 of the Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222) amends the computation of the Maximum Housing Amount Exclusion under Section 911 of the Code.
To clarify, I do not earn a foreign income. I earn income in the USA, but live in Mexico
You are doing the work in Mexico not the US
You are physically out of the country
Yes, I am physically out of the country, but the company I telecommute to is in the USA
I interpret that you are not in the US. You are doing work for a company that is in the US but you are doing the work in Mexico
correct. i have an office here in my home in Mazatlan, Mexico
OK, no matter how good the internet is, it cannot physically place you in another country. The tax rules say in another country physically.If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings
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 qualifying days do not have to be consecutive. The physical presence test applies to both U.S. citizens and resident aliens. You meet this test.
Even when you are self employed and file a Schedule C you can exclude. You can not get rid of SE Tax though, so that will still remain.
You use Form 2555 to exclude the income.
okay............I would guess this form is available on Turbo Tax, since that is what I use?
It is. You will need to mark that you have foreign income.
Robin, do you know if I can file some sort of amended tax return for last year, since I also lived here and paid big $$$ in taxes?
I just looked at Turbo Tax and they advise the following:For best results, however, use TurboTax Deluxe.
Yes you can amend for last year
Okay, thanks so much for your advice. Is this advice session now closed, or if I find I have further questions can I sign back to this?
You can come back after you click ACCEPT if you have a specific question about this subject
okay great, thanks so much. will i recv a transcript of this chat for my reference?
Make sure you save this and you should have access
Thanks Robin, Have a great day!