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New Member

Do I need to report foreign taxable income or total income?

I am a resident and owe tax on my foreign income. Do I need to report foreign taxable income or total income?

Part of my foreign income is non-taxable in the foreign country, like contribution to a foreign pension plan, foreign health plan. Is that taxable by U.S.?

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Level 6

Do I need to report foreign taxable income or total income?

If you are a U.S. Citizen or resident and living in the U.S., then you have to report all of your foreign income.

Whether amounts are excluded in a foreign countries income tax is mostly irrelevant in the U.S.

However, if you paid foreign taxes, you may be entitled to the foreign tax credit.

Also, you should consult the tax treaty between the country you received the income from and the U. S.  According to the tax treaty, there may be possible exclusions, special handling of various types of income.

See this link for foreign tax credit

https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit

Information regarding tax treaties

https://www.irs.gov/uac/about-publication-901





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2 Replies
Highlighted
Level 6

Do I need to report foreign taxable income or total income?

If you are a U.S. Citizen or resident and living in the U.S., then you have to report all of your foreign income.

Whether amounts are excluded in a foreign countries income tax is mostly irrelevant in the U.S.

However, if you paid foreign taxes, you may be entitled to the foreign tax credit.

Also, you should consult the tax treaty between the country you received the income from and the U. S.  According to the tax treaty, there may be possible exclusions, special handling of various types of income.

See this link for foreign tax credit

https://www.irs.gov/individuals/international-taxpayers/foreign-tax-credit

Information regarding tax treaties

https://www.irs.gov/uac/about-publication-901





View solution in original post

New Member

Do I need to report foreign taxable income or total income?

Thanks! That's very helpful!