Foreign income. I don't have a W2 from employer, what form do i use to report income?

[MargaretL]

You don't need any form to report foreign earned income. Please select "A statement from my foreign employer (could be cash)" option to report income without form W2. (see attached picture).

You don't have to have a W2 form to report foreign wages. Often, employers simply give you a year-end statement or nothing at all. When going through Foreign Earned Income and Exclusion interview questions, you will have a choice to enter the income as W2, self-employment, or a statement from employer (could be cash).

To enter foreign income:

1. Federal Taxes

2. Wages & Income

3. Scroll down to Less Common Income

4. Select Foreign Earned Income and Exclusion

[Anonymous]

Good answer, that really helps. I have a question. How to convert foreign income into dollars properly. Which conversion rate should I use?

[KarenJ2]

The IRS has no official exchange rate.  You can use posted exchange rates that are used consistently.

The IRS does offer yearly average exchange rates at the following link.

IRS Yearly Average Exchange Rates

[NYC20]

This is helpful. Do we report gross or net income (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.

[DavidD66]

You report your gross foreign income (not net). You also report the foreign tax you paid, for which you will receive a credit (or deduction).

[Ari18]

Another question - what if your foreign income is already included in your W2? I was on a project in Puerto Rico for several months -- how can I show that part of my income reported in my W2 was foreign? I also paid taxes on it so I believe I need to get the foreign tax credit. 

[AmyC]

@Ari18  All worldwide income is reported on the US return. You want a credit for the taxes already paid on the foreign income. Use form 1116 and fill out the portion of the wages earned outside the US and the tax paid.

You will want to claim the credit rather than taking the deduction, most likely. If you itemize, you can try it both ways. If you do not itemize, do not waste your time on the deduction. Please see:

Where do I enter the foreign tax credit (Form 1116) or deduction for 2019?

[Hunteri2]

I received cash. It's saying I would have to mail in my return. Is that normal? Will I have to somehow show proof?

[JohnB5677]

No, receiving cash as a form of payment as foreign income should not be a trigger to require you file by mail.  Is there a specific message associated with the file by mail requirement?

[MC1029]

I am getting the same message. Saying I must file by mail because I don't have income listed in line 7b.

I work in Canada, I don't get a W2. All I selected was foreign income. Should I still enter it in the W2 area? Would it be considered double income?

[KarenJ2]

You need to input $1 in interest or dividends or something so that you have income and can e-file.  It would not affect your taxes.

[leaford]

I'm sorry, I'm still a little confused. Do I actually have to attach a copy of the statement from my foreign employer when I e-file, or do I just write in the income? I ask because my employer is closed due to corona and I can't get a statement until the accounting department goes back to work.

[DianeC958]

No, you do not need to attach a statement from your foreign employer.  You can go ahead and file your return with the information about the income.

If the IRS wants more information, they will send you a letter asking for the information.

@leaford

[AlohAsia2020]

It's not clear whether this is only for those filing 2555.

I cannot file 2555 for another year so I must file Foreign Tax Credit.

Can I still follow this advice in that instance?
It's easy to do this on paper (it was last year even if not entirely correct perhaps), but on TurboTax you have to put this income in somewhere.

Thanks,

T