The only foreign income that I have reported is very modest dividends from company shares I own.
I also fell to thinking that this sort of income should be termed "foreign social security income" as said income wasn't accrued by plowing a portion of my salary into a 401(k) or anything like that. The "pension" from overseas could be likened to "social security payments" here in the U.S.
The issue is not really that I can't report this income BUT rather the impossibility of claiming a tax credit on this income. The international tax treaty between the U.S. and the country where I was born also stipulates that this income is not taxable by the IRS. Of course, I am obligated to report the income to the IRS and the tax credit that I am due will more than likely NOT make any difference in the amount of total taxes we pay here in the U.S. We're filing married jointly.
Thank you so much!
JJ
