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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29558
Experience:  Taxes, Immigration, Labor Relations
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would you let me know where I can input foreign income and

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would you let me know where I can input foreign income(wage) and get the credit in detail on 1040 ? thanks


LEV :

Hi and welcome to Just Answer!
When you receive foreign wages which are not reported on W2 form - you need to prepare so-called substitute W2 form - http://www.irs.gov/pub/irs-pdf/f4852.pdf
you put explanation on the form, sign and attach that form to your tax return.
Some providers doesn't allow to e-file with that form - in this case you should print and mail your tax return to the IRS.

LEV :

Your foreign wages will be reported on form 1040 line 7.

Customer:

How can we get the credit ? thanks

LEV :

What credit do you claim?

LEV :

Are you asking about foreign tax credit?

Customer:

yes, I paid the tax for foreign wage.

LEV :

If the same income is taxable abroad and in the US - you may claim a credit for taxes paid abroad - so the same income would not be taxed twice. Use the form 1116 -http://www.irs.gov/pub/irs-pdf/f1116.pdf please find instructions here - http://www.irs.gov/pub/irs-pdf/f1116.pdf
The credit is limited by the US tax liability on the same income - the form 1116 is used to calculate the amount of credit. Means - if tax liability abroad is higher - there will not be US taxes on that income, but if tax liability abroad is lower - in the US you will pay the difference after the credit will be applied.

Customer:

okay thanks

Lev and 2 other Tax Specialists are ready to help you
Customer: replied 4 years ago.

When you receive foreign wages which are not reported on W2 form - you need to prepare so-called substitute W2 form -> can we input foreign wages in other income line 21 ? thanks

Wages must be reported on line 7.
If that is income from wages - it should not be reported on line 21.
Customer: replied 4 years ago.

okay thanks

You are welcome!
Please let me know if you need any help with reporting.