Form 1040NR with Forms 2555 and 1116

[The Real Halloween]

Can PTO prepare Form 1040NR together with Forms 2555 and 1116?

I am preparing these 3 forms together but something in the 1040NR screen is keeping it from taking the exclusion and FTC. Any suggestion?

Thanks for your time and attention.

[sjrcpa]

1040NR is for a nonresident alien to report US source taxable income. 2555 is for excluding foreign source earned income. Why is foreign source income being included on a 1040NR?

[The Real Halloween]

@sjrcpa Thanks for your comments.

Foreign source income is included because TP is a resident alien for part of the year therefore Forms 2555 and 1116 captured the wages (ECI) for that period.

[sjrcpa]

Oh. So you're doing a dual status return. 

[The Real Halloween]

@sjrcpa It is a dual status return (f1040NR outbound).

Do you see a problem by reporting the wages on line 8 f1040NR and FTC on line 46?

Thanks so much for your time.

[sjrcpa]

I would have to read up on the dual status reporting directions. I did my last one in July but she went from nonresident alien to resident and only had wages for the 1040.

@itonewbie may be able to help.

[itonewbie]

@The Real Halloween It's not clear what you are trying to accomplish.  You mentioned it's a F.1040NR outbound.  If this is a for a foreign national who left the US and that individual no longer qualified as a resident alien after the departure, during the NR period, he/she will only be subject to US tax on US-ECI and certain US-source FDAP.  If he/she received wages that are US-ECI during the NR period, US would generally have the right to tax that income notwithstanding treaty benefits that may be available and those wages would be reportable on Line 8.  In that case, relief for double taxation would generally be claimed on the foreign instead of US return.

[The Real Halloween]

@itonewbie @sjrcpa Thanks for your valuable comments.

The wages are foreign wages earned overseas when TP was a green card holder (when TP was US resident alien). TP expatriated on August 31, 2019 via Form I-407. Therefore, all foreign wages earned from January 1, 2019 to August 31, 2019 were reported on Line 8 Form 1040NR and on Line 21 for the FEIE (Tax home was overseas and TP met the physical presence test for the qualifying period September 1, 2018 to August 31, 2019) and on Line 46 for the FTC on wages on Line 8.

Is this correct?

Please let me know if my understanding of this filing was wrong.

[itonewbie · Accepted solution]

PTO does not handle D/S returns.  You will need to prepare the 1040 statement and plug in the numbers on 1040NR.

[The Real Halloween]

@itonewbie @sjrcpa Many thanks!

[itonewbie]

NP.  Anytime.