Hello and thank you for using Just Answer, IWORKED IN CHINA FROM 1/2012 UNTIL 5/28/2012 Are you still in China or were you there till 2013? If so you can use the Form 2555 to exclude income which is shown in Box 1 of your W2. If not then you would only place Box 1 amount on Line 7 of your 1040 as wages. Your Box 2 is the federal taxes withheld. This would be the actual amount of tax that was withheld for federal.
The boxes 3 and 5 are income that was taxable not for Income Tax but for Social Security and Medicare. Those amounts are not needed on your 1040 for filing.
If you were only in China (or any other foreign country) for less than 330 days in a 12 month period you may not exclude your income. Generally, to meet the physical presence test, you must be physically present in a foreign country or countries for at least 330 full days during the 12-month period. You can count days you spent abroad for any reason. You do not have to be in a foreign country only for employment purposes. You can be on vacation time.
I said i worked in china from 1/1/20`12 to 5/28/2012
I read that
But were you still outside the US for the remainder of 2012?
i paid chinese taxes on the $103355 no what
The W2 you mentioned
i nworked in the us fromn5/28/2012 to 12/31/2012
Ok for 2012 you will not be allowed to exclude any
you can use the Form 1116 to claim a credit for taxes that you paid in China on teh same amount that you will be taxed in teh US
You said you paid tax in China
So you will need to use the income tax you paid on the $12000 that is listed in your Box 1
The Form 2555 is not allowed for you if you did not met the time but the Double Tax relief for you is the Form 1116
On your 1040 you will list the $12,000 for wages on Line 7
Then $0 for taxes withheld on page 2 but on the Form 1116 you will receive credit for tax you paid in China which will carry over to your 1040 line 47
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