Where to enter foreign compensation - see details

[jamiegmayes]

I have foreign income (government paid maternity leave compensation, parental leave compensation, and compensation for each child) that I would like to make sure I enter in the correct place in TurboTax.  One place is under: Wages and Income -> Foreign Income, which seems to be for foreign employer paid income.  Another place is under: Wages and Income -> Miscellaneous Income -> Other reportable income, which I do not find a way to designate as foreign.  A third place is under: Deductions and Credits -> Foreign Tax Credit -> General Category Income Worksheet -> Country -> Other Gross Income; is this the correct place to enter this foreign income?  By entering the income in this last location, will it be included in my total income on my 1040 line 22 and my gross income on my 1040 line 37?

[pk]

your citizenship status ( US citizen/resident/...), which country are you getting payment from, are you working there ?,if working your employer is an US entity or foreign, the webenfits that yuou received  -- are  these taxed by the local govt.  or is a social benefit available to all whether employed or not --- need answerd  before  one can answer as to how to treat for US taxes

[jamiegmayes]

I'm a US citizen.  I live and am paid in France.  My employeur is a French entity of a US company.  I have no wages from my employeur this year because I was on leave.  
1 The maternity leave compensation is taxed by the French government as income.  It is paid by government a organisation called CPAM.  The employeur and employee pay cotisations to the government organisation monthly.
2 The parental leave compensation is not taxed by the French government and is a social benefit.  It is paid by a government organisation called CAF - Caisse Allocation Familial.  The parental leave compensation is available to parnets of young children who have worked and paid taxes for certain prior periods.  
3 The compensation for each child is not taxed by the French government and is a social benefit.  It is paid by a government organisation called CAF - Caisse Allocation Familial.  The compensation for each child is available to all whether employed or not.
Thank you very much for your expertise.

[pk]

jamiegmayes,  

(1)  maternity compensation, being taxable in France  ( even though it is an insurance  that is paid for by the employee and the employee), available only to emplyees and effectively replacing wages--- leads me to believe that this is disability payment equivalent ( in the USA). This would therefore be taxable in the USA as wages till the retirement age and then as pension.  So you would need to report this amount as wages  --- obviously you would have social Security and Medicare implication but this is no different than when you get a wage  from your employer for the work that you perform. Also therefore this amount should be part of earned income exclusion eligibility.

(2) the parenatl leave compensation  could be looked up as a employee benefit  and not connected with your actual work -- i.e. all employees are eligible for it , if needed. This is like sick leave and therefore I would propose that it is not taxable  or recognizable for US tax purposes.  The employer is essentially giving you extra paid leave  -- you are nopt getting extra money  but you are getting without being present at your station of work. So no reporting required

(3) this benefit is for the child -- it is like   providing free meals at school  for the benefit of all children ( the future of the country concerned ). Therefore this is not a taxable item. Furhtemore it is being given to the parent in respect/ for the child -- who has no income anyways.  It is like  a counrty  providing cleaner air ( and spending money in the process ) for all its inhabitants -- not a taxable benefit -- you did not have to do anything to get it  ( perhaps a gift from the govt. -- still not your income ).

I hope this helps you --- if you need more help, consider adding to this thread --pk