KarenJ2
Expert Alumni

Deductions & credits

If you received a foreign wage statement instead of a W-2, you need to enter the amount in 

 

To enter your foreign wages in TurboTax, you need to: 

  1. Enter foreign earned income in the search bar at the top of the screen and click the Jump to link 

  2. On the first screen it will ask you what form your foreign income was reported on, you need to check statement from my foreign employer (converted to USD) 

  3. On the next screen enter your Foreign wages **

  4. Continue through the screens answering the questions 

  5. Then you will get the screen,Would you like to Try and Exclude Your Foreign Earned Income,  

  6. Enter - answer either yes or no 

  7. The program will tell you that form 2555 will be deleted if you do not want to use the foreign earned income exclusion.  Say OK.

To enter your foreign tax 

  

  1. Type in foreign tax credit in the search bar at the top of the screen and click Jump to 

  2. You will need to click through a number of screens about dividends and interest.   

  3. When you get to the screen, Choose the Income Type, click on General Limitation income.  This is the category for wages. 

  4. Continue through all the rest of the screens entering the country and the foreign tax amount. 

  5. You enter the foreign tax amount in the box Foreign Taxes on Other Income**

**On the next screen with a box for adjustment to wages, if you had any US workdays during 2019 

you need to allocate your wages by total US days / Total of all workdays.  This is because only foreign workdays can create a foreign wages.  So if you had 10 US workdays in 2019 and 240 total workdays,  you would multiply 10/ 240 * total foreign wages = US source income  Then you subtract the US source income in the adjustments to wages box to get actual foreign wages earned.

 

If you did earn foreign self-employment income, you need to first enter your self-employment income in the business section and then in the foreign earned income exclusion section.

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