I don't understand how to file

As the subject line says, I don't actually understand how or what to file on my US taxes. I've always used preparation services (Turbotax, H&R Block, Tax Slayer). Usually, this has taken care of things.

Depending on the service they sometimes miss things or aren't clear on why I need to fill out certain forms. I'm hoping to get some guidance about what forms I should file and advice on how to proceed so that everything is right and legal.

I only have 4 forms, a 1099R, a 1099-E, and a 1095-B, and will have a state return. However, I'm very confused about how to report my foreign financial assets.

Turbotax will ask me if I have any, and ask appropriate questions about how much is in the account, etc. It tells me I don't meet the threshold for even reporting it because it's over $10k, but less than $200k. Taxslayer just gives me the form to fill out myself. What is the appropriate course of action with a foreign bank account? I know it's over $10k as money transfer services will say as much when converting to USD, but I don't know which service to use to be able to accurately tell the IRS how much my foreign bank account has in USD.

Additionally, I never report my wifes income (as she is from the UK, has no SSN, and we have no intent to live in the US) because I've always filed single. But I've heard of something called a "Non-resident Alien" and was once told if I filed married I'd need to fill one out.

I don't honestly know what that means, as outside of being my spouse her and her income has nothing to do with the US.

As the subject line says, I don't actually understand how or what to file on my US taxes. I've always used preparation services (Turbotax, H&R Block, Tax Slayer). Usually, this has taken care of things.

Depending on the service they sometimes miss things or aren't clear on why I need to fill out certain forms. I'm hoping to get some guidance about what forms I should file and advice on how to proceed so that everything is right and legal.

I only have 4 forms, a 1099R, a 1099-E, and a 1095-B, and will have a state return. However, I'm very confused about how to report my foreign financial assets.

Turbotax will ask me if I have any, and ask appropriate questions about how much is in the account, etc. It tells me I don't meet the threshold for even reporting it because it's over $10k, but less than $200k. Taxslayer just gives me the form to fill out myself. What is the appropriate course of action with a foreign bank account? I know it's over $10k as money transfer services will say as much when converting to USD, but I don't know which service to use to be able to accurately tell the IRS how much my foreign bank account has in USD.

Additionally, I never report my wifes income (as she is from the UK, has no SSN, and we have no intent to live in the US) because I've always filed single. But I've heard of something called a "Non-resident Alien" and was once told if I filed married I'd need to fill one out.

I don't honestly know what that means, as outside of being my spouse her and her income has nothing to do with the US.

I’m not a tax pro but I can say for sure that you should be filing as “Married Filing Separately “, not as “Single”. Your wife’s income is not counted and instead of her SSN you should enter NRA (Non Resident Alien).

Your bank accounts if over $10k should be reported using the Fincen website and is easy to do. This is the Foreign Bank Account Report (FBAR) and is different from IRS reporting.

If your bank accounts don’t exceed $200k at year end or $300k at any time during the year then they don’t have to be reported on your IRS tax return. However there is checkbox on Schedule B to indicate that you do have foreign bank accounts, and TurboTax does prompt for that question.

I only have 4 forms, a 1099R, a 1099-E, and a 1095-B, and will have a state return. However, I'm very confused about how to report my foreign financial assets.

What is the 4th form you have, and what is form 1099-E?

Just curious.

The 4th form will just be for the state return. It'll be a form 140. I don't pay any state taxes as a veteran, and instead they state always pays me a refund. Sometimes I've filed for it, other times I haven't because the cost of filing state taxes is almost as much as the refund.

I’m not a tax pro but I can say for sure that you should be filing as “Married Filing Separately “, not as “Single”. Your wife’s income is not counted and instead of her SSN you should enter NRA (Non Resident Alien).

Your bank accounts if over $10k should be reported using the Fincen website and is easy to do. This is the Foreign Bank Account Report (FBAR) and is different from IRS reporting.

If your bank accounts don’t exceed $200k at year end or $300k at any time during the year then they don’t have to be reported on your IRS tax return. However there is checkbox on Schedule B to indicate that you do have foreign bank accounts, and TurboTax does prompt for that question.

Okay so I'll definitely need to stop using a tax filing service then as they don't allow me to even do a NRA form. Last year when I tried it, Turbotax instead was saying I needed to print them out and send them by post instead as that was a service they did not provide.

Thanks for the website, I've never heard of it or seen it on the IRS website either. It's much appreciated. How is it different though?

You mentioned a checkbox on Schedule B, what is a schedule B?

You mentioned a checkbox on Schedule B, what is a schedule B?

Schedule B is where you report interest from banks and such. When using the likes of turbo tax it will ask the relevant question about foreign bank accounts and complete it for you.  If you have a copy of your last tax filing you should find it there.

Have a look at Part III

https://www.irs.gov/pub/irs-pdf/f1040sb.pdf

Schedule B is where you report interest from banks and such. When using the likes of turbo tax it will ask the relevant question about foreign bank accounts and complete it for you.  If you have a copy of your last tax filing you should find it there.

Have a look at Part III

https://www.irs.gov/pub/irs-pdf/f1040sb.pdf

I've never had Turbotax do that for me, and I've never filed a Schedule B. Turbotax only asks if I have an account with $10k, then goes on to ask me if I that account has between $200k to $300k. I've never reported any interest from my foreign account the entire time I've had it.


I'm completely lost with that form, it's saying List the name of a "payer", but I'm not paying anything. There is no mortgage as I don't have one and there is no "buyer". I'm afraid the form is going way above my head.

I've never had Turbotax do that for me, and I've never filed a Schedule B. Turbotax only asks if I have an account with $10k, then goes on to ask me if I that account has between $200k to $300k. I've never reported any interest from my foreign account the entire time I've had it.


I'm completely lost with that form, it's saying List the name of a "payer", but I'm not paying anything. There is no mortgage as I don't have one and there is no "buyer". I'm afraid the form is going way above my head.

I don’t know what to say as TurboTax always completes that form for me. TT should ask IF you have a foreign account and then if the totals are greater than $10k etc. 

No matter what the balance is, if you have any foreign accounts the appropriate box in Schedule B should be marked. I expect that if TT believes you have no foreign banks AND you have no interest from any bank then Schedule B is not required.

https://www.irs.gov/forms-pubs/about-schedule-b-form-1040

I am not positive, but I think the free online version of TT does not include Schedule B, so if that's the one you used, that's probably the problem.

The software should have asked you something to the effect of "Did you own or control a foreign bank account, trust or financial asset in 2024?"  If any of those were applicable, you would have clicked to affirm. At that point it should have generated the Schedule B.

You can re-file prior to April 15 (in the States) or by the overseas filing date to correct the mistake.