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

SPONSORED REPORT

2018 financial reporting survey: Challenges and trends

Learn the top reporting challenges that emerged in a survey of more than 800 finance, accounting, and compliance professionals across the world, and compare them with your organization's obstacles.

PODCAST

How the skill set for today’s CFO is changing

Scott Simmons, a search expert for large-company CFOs, gives advice for the next generation of finance leaders and more, including which universities are regularly producing future CEOs and CFOs.