Foreign earned compensation is any income that is earned through a source outside of the United States. In some instances, the income that you earned can be excluded.
To report foreign earned income from wages, please go to:
- Federal Section
- Income
- Less Common Income
- Other Compensation
- Foreign Earned Compensation
For more information about Form 2555 for Foreign Earned Income Exclusion, please click here!
How do I report my self-employed foreign income?
For individuals who are self-employed, and are considered a U.S. citizen or resident, the rules for paying your self-employment tax are the same whether you are living abroad, or within the United States. If you are considered a non-resident alien, you are not subject to self-employment tax. If you are considered a resident alien, however, self-employment income that you receive is still subject to the self-employment tax, even if the pay you received was for services performs as a non-resident alien.
You will be required to take into account all of your self-employment income when you figure your net earnings from self-employed work (this includes income that is exempt from income tax due to the foreign earned income exclusion).
To report your foreign self-employed income, go to:
- Federal Section
- Income
- Profit or Loss from a Business
You would complete for 2555 to exclude any foreign earned self- employed income.
How do I report my foreign pension?
The taxable amount of foreign pensions/annuity distributions is determined using the Gross Distribution minus the Cost. Income that you received from foreign pensions or annuities may be fully or partially taxable. This is true even if you did not receive a Form 1099 reporting the amount of your income.
To report your foreign pension or annuity distributions, please go to:
- Federal Section
- Income
- Less Common Income
- Other Compensation
- Foreign Earned Compensation
- Enter as Foreign Pension Received and/or Foreign Taxable Pension