Deductions & credits

Hi @pk ,

Thanks a lot for the details! I understand that her income should not be considered as foreign income and she could not use form 1116 to declare foreign tax credit because she lives in US. And we shall talk to her employer to try to get refund from chinese government. For this part, I'm clear now. Thanks again for your elaboration!

However, I'm a little confused about where to report her wage income. You mentioned that we shall report it as "self-employment". According to IRS, there are only following 3 conditions:

• You carry on a trade or business as a sole proprietor or an independent contractor.
• You are a member of a partnership that carries on a trade or business.
• You are otherwise in business for yourself (including in a part-time business or as a gig worker).

That's her full time job. And because it's a foreign company, she did not get W-2. I feel like she does not satisfy any of the above 3 conditions. I'm thinking can we use other reportable income category to report her wage income? What do you think? Thanks a lot!