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New Member

When asked to enter my foreign earned income on which I pay foreign taxes, should I enter gross or net foreign earned income?

 
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Level 9

When asked to enter my foreign earned income on which I pay foreign taxes, should I enter gross or net foreign earned income?

Gross foreign earned income is entered (before taxes) for the foreign earned income exclusion. Then, please be sure to go to Deductions & Credits>Estimates and other Taxes Paid>Foreign Taxes and enter the taxes that you paid on the foreign income to claim foreign tax credit. 

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Level 1

When asked to enter my foreign earned income on which I pay foreign taxes, should I enter gross or net foreign earned income?

 
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Expert Alumni

When asked to enter my foreign earned income on which I pay foreign taxes, should I enter gross or net foreign earned income?

 

Gross foreign earned income is entered (before taxes) for the foreign earned income exclusion, unless you have self-employment income, then you would enter your net self-employment income after expenses.

 

Then, please be sure to go to Deductions & Credits>Estimates and other Taxes Paid>Foreign

 

Taxes and enter the taxes that you paid on the foreign income to claim foreign tax credit. 

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Level 1

When asked to enter my foreign earned income on which I pay foreign taxes, should I enter gross or net foreign earned income?

Thanks for your answers. I have an extra question : I'm based in France, and I'm not very clear on what is the IRS taxable revenu definition (what we have to declare in Form 1040 as "wages and salaries").

- Is it my French Incomes before social contribution, and before Income tax (in France we call it "Salaire Brut").

- or my French Incomes after social contribution, and before Income tax (called "Salaire Net").

 

In France, the taxable revenu is our Incomes after social contribution.

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Expert Alumni

When asked to enter my foreign earned income on which I pay foreign taxes, should I enter gross or net foreign earned income?

Before contributions so Salaire Brut. Then you will enter the taxes you paid to France on the Form 1116.

You probably want the credit option. See Where do I enter the foreign tax credit (Form 1116) or deduction for 2019?

@Matpel

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