FAFSA - Foreign Income

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mildlyironic
Posts: 21
Joined: Fri Nov 19, 2010 2:35 am

FAFSA - Foreign Income

Postby mildlyironic » Tue Jan 18, 2011 6:21 am

Quick FAFSA question,

I'm a US citizen but started working in a foreign country (Japan) this year, so my income is in a different currency (yen). Currently, I'm using the market exchange rate to convert my numbers for FAFSA, but how do I handle my taxes, since I am exempt from both US and my foreign country's taxes? Additionally, I can't estimate it from last year's 1040 because I wasn't abroad last year and didn't have this complication.

Thanks so much in advance!

bmneely
Posts: 12
Joined: Tue Dec 29, 2009 11:03 pm

Re: FAFSA - Foreign Income

Postby bmneely » Tue Jan 18, 2011 7:34 am

Hey,
I've been working in Korea for the past year and half so I have a similar situation as you. From what I've been able to find out you'll need to file a 1040 with a 2555 form (foreign income exclusion). For the FAFSA tax question you just enter the amount of taxes you paid in Japan. If you didn't pay any, then you just enter 0 in that box.

Let me know if that answers your question, or if you have any more.

User avatar
Henchman21
Posts: 99
Joined: Mon Nov 08, 2010 7:03 am

Re: FAFSA - Foreign Income

Postby Henchman21 » Tue Jan 18, 2011 8:41 am

Just use Turbo Tax.
I used it when I worked in Korea.

mildlyironic
Posts: 21
Joined: Fri Nov 19, 2010 2:35 am

Re: FAFSA - Foreign Income

Postby mildlyironic » Tue Jan 18, 2011 9:50 pm

Hey,

Thanks so much! Thanks to the advice, I was able to figure everything out =)




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