Level 7

Solved

1040 , FOREIGN EARNED INCOME

Forum|Forum|2 years ago
February 8, 2024
1 reply
19 views

Hi to all, client has foreign earned income and a w-2 also should paper file for a reason ( also, has not been 330 days abroad, so no exclusions) I entered it on 1040 worksheet line 1 but when I make paper file, I have just 1040 page one and two.

for line 1h : Other earned income (see instructions) I have that numbers and do not have any form that indicates this numbers for foreign earned income and in front of see instruction I do not have any explanation.

Is it ok to send client, just two pages of 1040 and for 8948 for IRS?

client is resident of Massachusetts, and should give it to him paper as well, does Massachusetts need any form like 8948 and should attach 1040 to for?

Thanks in advance.

ProSeries Professional

This topic has been closed for replies.

Best answer by itonewbie

thanks a lot, for part of foreign income this link I found it that is why I entered line 1 h.

https://accountants.intuit.com/community/proseries-tax-discussions/discussion/foreign-earned-income/01/233895#M125818

Like I said, it's not a problem whether it shows up on Line 1a or 1h. It's the construct of why it should be there, based on your understanding, and what that implies in terms of the reporting of his business.

itonewbie

Level 15

@HOPE2 wrote:

Hi to all, client has foreign earned income and a w-2 also should paper file for a reason

Individuals with compensation paid by an overseas employer and not reported on a W-2 are eligible for e-filing. You will not be able to use that as the reason for filing on paper.

also, has not been 330 days abroad, so no exclusions

If your client will meet the PPT in time and satisfy all the other requirements for claiming FEIE, you should extend the return. If all the other requirements are met, except for PPT, your client could still qualify for FEIE by meeting the BFR test although that will mean extending the 2023 return until after the end of this year. Of course, FTC without FEIE could be more tax efficient if your client is in a high-tax jurisdiction.

Is it ok to send client, just two pages of 1040 and for 8948 for IRS?

No

client is resident of Massachusetts, and should give it to him paper as well

In case you haven't reviewed and discussed with your client his/her MA tax residency and domicile, you may like to take a second look. If your client will remain a MA tax resident while overseas (especially if your client is paid an expat or semi-expat package but without tax protection or equalization), you should help your client prepare for what might be an unexpected state tax liability because MA neither conforms to the IRC for FEIE nor allows a credit for foreign tax (except for taxes paid to Canada).

---------------------------------------------------------------------------------Still an AllStar

HOPE2Author

Level 7

Hi@itonewbie.his wife is living the other country and does not have SSN so should file paper( reason )

he was in TURKEY for 5 month and he worked as self-employed and money wired in his account in the U.S.

In total he stayed in MA for 7 months. This is his case.

what does mean: PPT, FEIE, FTC and BFR?

Thanks.

N

Norman2001

Level 6

PPT = Physical Presence Test

FEIE = Foreign Earned Income Exclusion or Exemption, not sure which one

FTC = Foreign Tax Credit

BFR = Bona Fide Resident

Sign up

Login with SSO

Let's get you signed in

Login with SSO