How do I report income on my 1040 for seasonal work in New Zealand?

Thanks for the detailed response! I don't think I received any official documentation like a W-2 from my New Zealand employer. I was paid in cash for some of it and direct deposit for the rest. Do you know if New Zealand has something similar to a W-2 that I should have received? Also, I was only there for 3 months - would I still qualify for that Foreign Earned Income Exclusion you mentioned?

New Zealand does have an equivalent called an IR348/IR20 form, but smaller employers or seasonal operations sometimes don't provide them to temporary workers. If you didn't receive one, compile all your payment evidence (bank statements, any pay slips you might have) and keep records of the work dates. For the Foreign Earned Income Exclusion (Form 2555), you typically need to meet either the bona fide residence test or the physical presence test, which generally require longer periods abroad (330 days in a 12-month period for physical presence). With only 3 months, you probably won't qualify for the exclusion, but you might be eligible for the Foreign Tax Credit if you paid taxes in New Zealand. This would help prevent you from being taxed twice on the same income.

Did it help you figure out how to handle partial year foreign employment? I worked in Japan for 5 months and I'm wondering if this would work for my situation too. My tax guy quoted me an extra $175 just to handle the international portion of my return.

I'm skeptical about these online tools. How does it actually work with the foreign income? Does it tell you which forms to file or does it actually file for you? And how does it handle exchange rates? I got paid in different currencies throughout the year and calculating the right rates seems like a nightmare.

It definitely handles partial year foreign employment! The tool specifically asks for your work dates and helps you determine which forms apply to shorter stays. I actually used it because the tax preparer I contacted wanted to charge me $200 extra for my New Zealand income. For your second question, the way it works is you upload your foreign pay documents or bank statements, and it extracts the payment information and dates. It automatically applies the historical exchange rates based on the dates you were paid, which was huge for me since NZD fluctuated quite a bit while I was there. It doesn't file for you - instead it gives you a completed worksheet showing exactly what goes where on your tax forms, along with all the supporting documentation you need to keep. You can either use this to file yourself or give it to your tax preparer (which saves them time and you money).

How does this actually work? I keep calling the IRS about my missing refund and can never get through. Do they just connect you to the regular IRS line or is it something special?

This sounds too good to be true. I've tried calling the IRS dozens of times about foreign income questions and always get disconnected after waiting 2+ hours. You're telling me this service somehow gets you through in minutes? I'll believe it when I see it.

It connects you to the regular IRS support line, but they use technology that navigates the phone tree and holds your place in line for you. When an actual agent is about to answer, it calls you and connects you directly to that agent. It's basically like having someone wait on hold for you. I was skeptical too! After spending three different days trying to get through myself and getting disconnected each time, I was pretty frustrated. The way it works is their system keeps trying different IRS phone numbers and times of day that have shorter wait times. Their system is persistent in a way that a human can't be. I actually got connected in about 12 minutes, and the IRS agent I spoke with gave me really specific advice about Form 1116 for my foreign income situation.

That's really helpful, thanks! Do you know where I can find information about this tax treaty? Is there a specific IRS form or website that explains how it would apply to my situation?

You can find the full text of all US tax treaties on the IRS website - search for "United States Income Tax Treaties A to Z" and look for New Zealand. But I'll warn you, these documents are written in dense legal language and can be hard to understand. A more user-friendly approach is to look at IRS Publication 901 (U.S. Tax Treaties). It breaks down the key provisions by country in more understandable language. For your specific situation as a seasonal worker, pay attention to the sections on "dependent personal services" or "income from employment" in the treaty. These sections typically address short-term work situations like yours.

This isn't totally accurate. The $10,000 threshold is for the COMBINED total of ALL your foreign accounts at ANY point during the year. So if you had $5k in a NZ account and $6k in another foreign account, you'd still need to file FBAR. Better safe than sorry with these things!