Free File Program Expanded to Include Returns Filed From Overseas


The IRS on Friday announced that taxpayers who live in foreign countries can now use the Free File program to prepare and e-file their federal tax returns (IR-2011-30). The program is available to both U.S. citizens and resident aliens, and currently five of the Free File software providers can accept returns filed from foreign addresses.

 

The Free File program is available to taxpayers with adjusted gross income of $58,000 or less. The IRS in its announcement points out that the $58,000 income limit applies after the IRC § 911 foreign earned income exclusion is subtracted from the taxpayer’s total income. This means that taxpayers living abroad who use the foreign earned income exclusion can potentially earn up to $149,500 and still be eligible to use the Free File program.

 

The IRS warns, however, that taxpayers claiming the foreign earned income exclusion or a foreign tax credit should make sure that the Free File software they are using supports Form 2555, Foreign Earned Income, and Form 1116, Foreign Tax Credit.

 

The IRS’ Free File system is available at www.irs.gov/freefile.

 

More from the JofA:

 

 Find us on Facebook  |   Follow us on Twitter  |   View JofA videos

MANAGEMENT ACCOUNTING

Developing finance leaders

A good leader recognizes that part of the job is developing the next generation of leaders. Veronica McCann, CGMA, a former division CFO at Commerzbank in Singapore, shares tips on developing future finance leaders.

PROFESSIONAL ISSUES

Belicia Cespedes: A CPA at 17

Through hard work and determination, Belicia Cespedes earned the credential before she was even eligible to vote.

SPONSORED REPORT

How to audit high risk areas

Revenue recognition, internal control over financial reporting, accounting estimates and going concern are areas of audit that have emerged as particularly challenging and complex.