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I have income from work at a foreign embassy in US as a US citizen. The help answers have broken links. IRS says to enter on Line 7 and file Sched. SE. How with no W-2?

 
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2 Replies
ee-ea
Level 15

I have income from work at a foreign embassy in US as a US citizen. The help answers have broken links. IRS says to enter on Line 7 and file Sched. SE. How with no W-2?

pk
Level 15
Level 15

I have income from work at a foreign embassy in US as a US citizen. The help answers have broken links. IRS says to enter on Line 7 and file Sched. SE. How with no W-2?

you need to file your return as a self-employed with some limitations -- pretend as if you have  received a 1099-MISC.

this is from the IRS:

"

U.S. Citizens

If you are a U.S. citizen working in the United States for a foreign government or international organization, you must report this compensation as wages on Form 1040 and pay self-employment tax on the compensation under the Self-Employment Contributions Act (SECA). Self-employment tax is computed on Schedule SE, Self-Employment Tax, and is also reported on Form 1040. Although you are subject to self-employment tax on this employee compensation, you are not "self-employed" for any other federal tax purposes. You may not claim deductions for expenses on Schedule C and are not qualified to establish a Simplified Employee Pension (SEP) Plan and there is no allowable deduction for contributions to any such plan. Rules of contributing to SEP/IRA plans are explained in IRS Publication 560, Retirement Plans for Small Business, and Revenue Ruling 73-384 for additional information.


I have just answered a similar question -- please see answers

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