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No W2 - employee in U.S. paid by foreign employer

For Jan / Feb 2023 I worked for a foreign employer as an an employee. I was NOT an independent contractor. The foreign employer took out foreign health/bens/taxes, and I was paid in foreign bank account, but I was in the U.S. the entire time.  I did not receive a W2. How and where and on what forms do I report this? (after March 1st I stayed in U.S. and worked for a U.S. Company) . 

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1 Reply
DaveF1006
Expert Alumni

No W2 - employee in U.S. paid by foreign employer

Here is how to report your income. Remember this needs to be reported in US dollars.

 

  1. Log into your account
  2. Select Wages and income>other income
  3. Miscellaneous Income, 1099-A, 1099>start
  4. Scroll to the bottom of the page to Other Reportable Income
  5. Other taxable income, answer yes
  6. Then give a brief description of the income and the amount listed in US dollars.

To claim a Foreign Tax Credit for the taxes paid in the Foreign Country.

 

  1. Open Turbo Tax
  2. Go to federal>deductions and credits>estimate and other taxes paid
  3. Foreign taxes >start
  4. Start answering questions. Make sure you answer the question correctly about if this is the first year you are making the simplified  election
  5. Answer the questions in the next screens until you reach a screen that talks about income type.. if you have more than one country, you will add that later.
  6. Next screen is where you add the country your foreign income was earned in. 
  7. Next screen will ask you what your source income earned in that country. Here you will allocate income earned while you were in that country.
  8. You will continue answering questions until you get to a screen that says foreign taxes paid to XXXX. Be sure not to list a date at the bottom beyond 12/31/2023 or you won't get the foreign tax credit and will show up as an error in your return.

As far as Health insurance premium paid, this would entered as an itemized deduction.  If you have enough expenses to itemize, you will be able to claim this deduction as a medical expense as long as all your medical expenses are in excess of 7.5% of your Adjusted Gross Income during the year. To enter.

 

  1. Go to federal>deductions and credits
  2. Medical>Medical Expenses
  3. There is an entry in this section where you will enter the premium paid for your foreign health insurance.

 

 

 

 

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