A benefit of working in China is that your income won't be taxed! Here's how to file.

Your AYC income falls before the “taxable income line”, so you'll need to fill out Forms 2555 and 1116. This shows the money earned abroad for record-keeping purposes, but does not tax that income. If you worked in America during this tax year, that's in addition to your regular 1040-EZ form, which you fill out using a W-2.

Here’s other links for context:

For information directly from the IRS, click HERE to learn about foreign earned income, and HERE to read the 2016 IRS Tax Guide for residents abroad.

Here's an excellent overview on US Tax for Expats Living in China, and a list of deadlines and other useful links, both written by Greenback, an online tax service geared towards US Expats.

To file using an online service, I (Jilli) usually use TaxSlayer (VPN needed). If you still live in China and have no VPN, I’d recommend TurboTax (no VPN needed).

 

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