My foreign employer does no issue W-2 forms. In the past I have simply converted my income from Danish crowns to US dollars and reported this amount on my 1040 form. Wh

[mr-d-]

Why is turbotax asking me to complete Form 4852?  I've been doing this for 20+ years and never used Form 4852 before?  Can I not simply submit my official annual 2016 Income document from my employer (Copenhagen International School)?

[fanfare]

[ -  ]

[bizprof]

Hello @fanfare Did you enter your income or "taxable income" as your foreign income when you file? I am asking for myself. Thank you.

[rjs · Accepted solution]

You can't enter your foreign income in the W-2 section of TurboTax. TurboTax is asking you to complete Form 4852 because you entered the income in the W-2 section and checked the box that says you "need to complete a substitute form." Form 4852 is the substitute W-2 form. But a substitute W-2 is for U.S. income for which the employer should have given you a W-2, but didn't. It's not for foreign income.

You have to enter your foreign earned income in the foreign earned income topic. Follow the instructions that SweetieJean gave you. When it asks you what form your foreign income was reported on, select "A statement from my foreign employer (could be cash)."

[SweetieJean]

Te enter foreign income:

• Type in foreign income in the search box, top right of your screen, then click the magnifying glass

• Click the jump to foreign income link in the search results.

• Follow the onscreen instructions to enter

To enter foreign taxes, type in the same words per the above instructions.

You may have to upgrade from TT Free.

[Rick19744]

See the attached.  As an ERO, TT cannot efile your return without a W-2 or substitute.  In this case, it is form 4852.

https://www.irs.gov/uac/submitting-the-electronic-return-to-the-irs

Things change, especially in this day and age of identity theft and fraud.

[SweetieJean]

It's foreign income.

[Rick19744]

Doesn't matter.  
General Rules Regarding Foreign Income

1. What foreign income is taxable on my U.S. return?

If you are a U.S. citizen or resident, you are required to report your worldwide income on your tax return. This means that you must not only report income you receive from U.S. sources, but you must also report income you receive from foreign sources.

2. Where do I report the foreign income on my return?

Generally, you report your foreign income where you normally report your U.S. income on your tax return. Earned income (wages) is reported on line 7 of Form 1040; interest and dividend income is reported on Schedule B; income from rental properties is reported on Schedule E, etc.

[TaxGuyBill]

@Rick19744   I am pretty sure that Form 4852 is still not required for Foreign Income.  ProSeries will do it without any errors.  I suspect the OP just entered something wrong, and needs to follow SweetieJean's directions to enter foreign job income.

[Rick19744]

Point taken.  Programs will handle this differently.

[NYC20]

Thanks. Do we report gross or net salary (i.e. amount that I receive)? I live in the US, but work for an EU company and taxes are VERY high, so the gross salary is unrepresentative and would put me in the higher bracket.

[HeritageTaxLady]

This reply is a year past the question, but if you are paying taxes to a EU country you are entitled to take the FEIE (2555), the FTC(1116), or both.  My recommendation is to seek a qualified tax practitioner who has experience with reporting foreign earned income and has knowledge of the various tax treaties.  I spend all summer correcting the mistakes of others.