Go Back   CDN Business Directory > Main Category > Taxes

 
 
Thread Tools Display Modes
  #2  
Old 04-14-2009, 11:07 PM
D. Stussy
Guest
 
Posts: n/a
Default Re: reporting wages not on W2/foreign earned income

"PeterL" <po.ning[at]gmail.com> wrote in message
news:ca88edbe-29a7-44d6-8ace-cfc0b63da75d[at]d2g2000pra.googlegroups.com...
- quote -

> On Apr 14, 7:33 am, leewa10_at_hotmail_dot_...[at]foo.com (leebop) wrote:
> > Hello, I have foreign earned income that isn't on a W-2 (or any kind of
> > document). For various reasons, it may be less costly to report it and
> > pay income tax than to claim the foreign earned income exclusion. Since
> > there is no documentation for the income, do I just write it on Line 7
> > form 1040, or do I need to also attach an explanation of where these

wages
> > came from/how the total was figured, etc? Thanks.

> My son has the same situation. I am doing his taxes and just write in
> the total income with payer name and address (foreign). If you are a
> full time foreign resident, you can claim the foreign earned income
> exclusion regardless of whether you have documentation or not.


I don't see any reason why the foreign employer has to be (or should be)
identified. If the IRS wants to know, let them ask for it.

- quote -

> From 1999-2003, I had a client who was working in Australia for a Hong Kong
Company. I did not identify the employer, either on the 1040 or the 2555,
and the IRS never asked, nor did they ask about my conversions of AU$ to
USD.

No explanation is needed.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #1  
Old 04-14-2009, 04:36 PM
PeterL
Guest
 
Posts: n/a
Default Re: reporting wages not on W2/foreign earned income

On Apr 14, 7:33*am, leewa10_at_hotmail_dot_...[at]foo.com (leebop) wrote:
- quote -

> Hello, I have foreign earned income that isn't on a W-2 (or any kind of
> document). *For various reasons, it may be less costly to report it and
> pay income tax than to claim the foreign earned income exclusion. *Since
> there is no documentation for the income, do I just write it on Line 7
> form 1040, or do I need to also attach an explanation of where these wages
> came from/how the total was figured, etc? *Thanks.



My son has the same situation. I am doing his taxes and just write in
the total income with payer name and address (foreign). If you are a
full time foreign resident, you can claim the foreign earned income
exclusion regardless of whether you have documentation or not.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 
Old 04-14-2009, 03:32 PM
Dick Adams
Guest
 
Posts: n/a
Default Re: reporting wages not on W2/foreign earned income

leebop <leewa10_at_hotmail_dot_com[at]foo.com> wrote:

- quote -

> Hello, I have foreign earned income that isn't on a W-2
> (or any kind of document). For various reasons, it may
> be less costly to report it and pay income tax than to
> claim the foreign earned income exclusion. Since there
> is no documentation for the income, do I just write it
> on Line 7 form 1040, or do I need to also attach an
> explanation of where these wages came from/how the total
> was figured, etc? Thanks.


It reenforces my belief in the integrity of people when
someone asks how to declare undocumented income.

The correctanswer depends on from where these wages came
and what you did to earn them. They most likely belong
on Schedule C and, if so, you have to pay self-employment
taxes. There are some narrow exceptions, but it would be
easier to respond if you would explain what did to earn
the income.

As for the Foreign Earned Income Exclusion, you MUST:
1. live and work abroad,
2. have a tax home in a foreign country, and
3. meet either the bona fide residence test or the
physical presence test.

Thus, taxpayers residing in the United States are not
eligible for the exclusion.

Dick

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
  #-1  
Old 04-14-2009, 02:33 PM
leebop
Guest
 
Posts: n/a
Default reporting wages not on W2/foreign earned income


Hello, I have foreign earned income that isn't on a W-2 (or any kind of
document). For various reasons, it may be less costly to report it and
pay income tax than to claim the foreign earned income exclusion. Since
there is no documentation for the income, do I just write it on Line 7
form 1040, or do I need to also attach an explanation of where these wages
came from/how the total was figured, etc? Thanks.
-----



##-----------------------------------------------##
Newsgroup Access Courtesy http://www.rockryno.com/
Tax and Accounting Software Forums
Web and RSS access to your favorite newsgroup -
misc.taxes.moderated - 21483 messages and counting!
##-----------------------------------------------##

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >
 
Similar Threads
Thread Forum Replies Last Post
Foreign Earned Income Exclusion & Foreign Tax Credit
ben.a.bowen@gmail.com: Hi, all. If one's tax household is outside the US and they earn income from a foreign entity with which there is a tax treaty, can they deduct...
Taxes 2 05-22-2008 11:22 AM
Schedule C Earned Income - Excluded as Foreign Earned Income?
akennis: I'm trying to confirm my understanding that income earned while living abroad as a sole proprietor (of a US LLC) can be excluded via form 2555 as...
Taxes 4 06-04-2007 02:29 AM
Reporting Earned Wages RE: Mexican Time Share Resort
Ken B. Winger: T/P (US resident) earned in 2004 approximately 30k Gross per his knowledge for commissions who worked and lived in Mexico and is employed by...
Taxes 3 06-07-2005 06:33 AM
Foreign earned income
Frank S. Duke, Jr.: Client works for US multinational, was transferred to Germany for 3 years and came back in 2000 with lots of foreign tax carryovers unused on 1116...
Taxes 1 04-08-2004 07:05 PM
Q: Is non-US citizen with Green Card still required to fill out Foreign Earned Income Exclusion Form 2555 for FE income?
Jim: I found lots of replies on USENET about a US citizens obligation to declare foreign earned income but i'm not sure what my situation is as I am a...
Taxes 1 01-28-2004 05:07 PM



Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

All times are GMT. The time now is 04:08 PM.