Taxes on Income earned abroad

[Nagima]

As far as I know the federal taxes are not paid for the income earned outside of US. How about the state taxes? (particuliarly NC) Is it ok not to file tax returns for the year I worked abroad?

 

[DTA93433]

The general rule of thumb regarding federal taxes is that ALL worldwide income is taxable, unless there is a specific exemption in the IRC (such as a foreign tax credit or foreign income exclusion......if you qualify). For the years you worked abroad (presuming you earned no NC income), there would be no need file a NC state return. Also if you own a foreign assets there maybe FBAR reporting requirements to the Treasury Department.

https://www.irs.gov/businesses/comparison-of-form-8938-and-fbar-requirements

 

[Giove]

-- New Question --

Hi I have a question about how to file income earned abroad.

I have to file both my 2017 & 2018 returns. Originally I was told by TurboTax that I didn't earn enough money abroad to require filing for 2017 but now, from what I understand it is required.

In 2017 I moved from the USA to Europe. (I have dual citizenship)
I earned a total of about $3000 in the US
and about €13,000 in Europe for the whole year.

My question is, How to report Income earned abroad?
Is it sufficient to report it in form 2555? Or is it also necessary to report foreign income in my 1040 line 7? (obviously I don't have a W2 from my European income.)

Any help would be much appreciated!
Many thanks.