ull ailu Jane Oneida Directions 1040 and a Using the tax software, complete the tax rolturm aquestions ate forms, schedules, or worksheets return, including Form 1 the scenaro entering Social Security numbers (SSNs) or Employer ident (EINs), replace the Xs as directed, or with any four digits of your Numbers (EINs Interview Notes worked in Germany since February 1, 2014. They did not return to the U.S at any time 2017. They want to file a joint return. Jeff and Jane are married and are U.S. citizens. They have lived and Income Jeffis employed as a manager. He works for Halmer Company, 4750 Court, 87600 Kaufbeuren, Bavaria, Germany wages (converted to U.S. dollars). dollars, the total income tax Jeff paid was $4,000. three yeers and expect to take it again this year. They have never revoked this Jeff has a year-end statement from his employer showing he earned $35,000m - Jeff paid income taxes throughout the year to Germany. Converted to U.S - They took the foreign earned income exclusion for Jeff\'s earnings for the last exclusion. Jeffs visa type: Unlimited - Jane works at the U.S. Consulate and has a Form W-2 for her salary. Jeff and Jane have checking and savings accounts at a German bank. Converted to U.S. dollars, Viterbo Bank paid them $216 in interest. The Oneidas paid foreign tax to Germany on this interest income in the amount of 55.50. The exchange rate on the date they paid the tax was 1 U.S. Dollar (USD) .90 Euro. . They are not required to file FinCEN Form 114 and they did not receive a distribution, were not grantors of, nor were they transferors to a foreign trust. 510-00-XXXX . The couple rents an apartment at 240 Hauptstrasse, 87600 Jeff Onnida Kaufbeuren, Germany, located in the state of Bavaria. They do not maintain any other residence abroad or in the U.S . They consider themselves residents of Germany and have never stated otherwise. 511-00-20OO Jane Oneida Jeff and Jane did not itemize for 2016 and do not have enough deductions to itemize for 2017 Jeff and Jane are covered under a health care plan purchased through Jane\'s employer 134
Ans to Q7.
False. Jeff is an US citizen and therefore liable to report his foreign wages on his joint tax return. As a rule any US citizen must report his or her foreign income irrespective of the place he/she is residing and these income is similarly taxed as if the person is residing in US. Although he is entitled to claim the foreign earned income exclusion.
Ans to Q8.
True. Jeff and Jane must report $216 in the form of interest from bank on their form 1040. Any bank interest over $10 must be reported as income in the return and it has to be accompanied by a form 1099.
Ans to Q9.
All of the above. In order to claim foreign earned income exclusion a person needs to meet the criteria as 1. The person must be a US citizen, 2. The person must be having eligible foreign income, 3. The person must be a bona fide resident of a foreign country for a period that includes the entire tax year, 4. The person must be physically present in that foreign country for at least 330 full days out of the 365 days year.
Ans to Q10.
$4000. The amount of federal income tax withheld from the income tax information is $4000
Ans to Q11.
False. Jeff earned his foreign income during the tax year in Germany and the amount converted into US currency is $35000. Therefore, his eligible foreign income is not $87000.
Ans to Q12.
True. If a person’s tax home is not in the foreign country then the person can not claim foreign earned income exclusion. Here Jane’s tax home is US and the income is derived by the US Government, so she can’t claim foreign earned income exclusion.
Ans to Q13.
The correct option is C. Jeff and Jane can include that $4000 as a federal income tax withholdings in Form 1040.
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