FAFSA Citizen abroad non U.S. income

Paying for College
1

My parents (U.S. citizens) haven’t filled their taxes for years, as they didn’t know they were supposed to while living abroad (all their income has been non-US). They will start filling taxes from this year on.

I am filling in the FAFSA and I am not sure how to fill:

“Enter your parents’ exemptions for 2015.”

They will fill for 2015 and their income (taxed separately in my country) is apparently under the exclusion threshold (much under 100k). Does the question ask for the # of exemptions? If so, how many should I put? Does it ask for an amount?

My country releases tax reports after April for the preceeding years (long after deadlines). Me and my sister are dependents so I assume we do not have to report taxes.

“You indicated that your parents will file a foreign tax return. Are they eligible to file an IRS form 1040A or 1040EZ?”

I read that citizens with Foreign Income have to fill only IRS form 2555. Are they eligible for those mentioned since all their income has been non-U.S (always under the foreign income threshold)?

2

OP, your parents really need to talk to the tax people who know about US tax laws. See http://irs.treasury.gov/rpo/rpo.jsf

No, at a minimum they should file tax returns since 2011.

See Line 6d of Form 1040.

No. I think your parents need to file Form 1040 and attaching with the Form 2555.

Your family need to take care the tax matters soon. I think the following law has been enacted. See http://www.wsj.com/articles/americans-pay-your-taxes-or-lose-your-passport-1447971424