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Where to report Foreign Employer Compensation on 1040

skyworks
Level 4

I have a client who is US resident, he received Foreign Employer Compensation.

How do I report on line 1 of 1040 and also able to be efile the return

Thnaks!

 

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1 Solution

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itonewbie
Level 15

@skyworks It works for all years.  I just tested that myself in case there has been any change.

You should not enter dummy EIN to get around this.  EIN should simply be left blank.

There is no need to enter a state EIN either.

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Still an AllStar

View solution in original post

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25 Replies 25
Just-Lisa-Now-
Level 15
Level 15
Youre using ProConnect Tax Online?
I know where to do it in ProSeries, but not in PTO.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
skyworks
Level 4

Hi Lisa,

Yes I am using Proconnect tax online.

I did entered on form 2555 (4852), but missing EIN, can't efile I guess.

 

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itonewbie
Level 15

@skyworksPlease see my response for what you should do.  You will be able to e-file.

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Still an AllStar
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Lisa - sorry i cant seem to find the entry on ProSeries. How can i get around reporting foreign wages on Line 1 as it gives me an e-filing error due to the missing EIN. I do not want to take the exclusion but ProSeries does not give me an option to select either or (or both where necessary). 

 

Please help. I called the help lines so many times but honestly they suck. 

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Huned
Level 1

Pro Series

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Huned
Level 1

Hi Lisa I am using Pro Series

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ashburn
Level 1

Please guide on how to report foreign wages on ProSeries.

I reside & work overseas. I am claiming form-2555 and form-1116. My foreign employer doesn't have a EIN, and I would like to report my foreign wages on line#1. I tried putting under W2, but keep getting error missing EIN (foreign employer doesn't have a EIN).

Need assistance (preferably screenshots) on how to put my foreign employer compensation on line#1.

Thanks.

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George4Tacks
Level 15

@ashburn @Huned @Sharp Consultants When you find a thread for a software you are NOT using, try a search for the form you want in the software you are using. 

ProSeries 2555 https://proconnect.intuit.com/community/forums/searchpage/tab/message?advanced=false&allow_punctuati...

ProSeries 1116 https://proconnect.intuit.com/community/forums/searchpage/tab/message?advanced=false&allow_punctuati...

If all of that still fails, start a new question in that software, by clicking it's image at the start of this forum. https://proconnect.intuit.com/community/

 


ex-AllStar
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ashburn
Level 1

Understood

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George4Tacks
Level 15

There is a search box at the top of the left column. Search for "foreign wages" and do the input there. 

 


ex-AllStar
itonewbie
Level 15

Is your client claiming foreign earned income exclusion?  If not, you will enter that under Deductions for Form 2555, not very Intuit(ively).  Whether you report that as regular wages or on Form 2555, you will need to mark that the income is from a foreign employer and choose the foreign country in which services were performed.

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Still an AllStar
skyworks
Level 4

Hi itonewbie,

I did entered on form 2555, since missing EIN#, causing critical diagonostic.

I thought there might be a different way to bypass form 2555 and EIN

With uncleared Diagnostics, can you still efile?

 

Thanks!

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skyworks
Level 4

here is the screen shot of  form 2555

Form 2555 Dignostics.PNG

 

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itonewbie
Level 15

You didn't seem to have followed my suggestion.  That would have cleared the diagnostic automatically.

  1. Scroll down to the section for Foreign Employer Compensation;
  2. Check the box for Compensation not reported on W-2;
  3. Select from the dropdown box the country where your client performed services in relation to the compensation.

Cheers!

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Still an AllStar
George4Tacks
Level 15

Capture.JPG


ex-AllStar
skyworks
Level 4

Hi George4Tacks,

Thanks for the screen, I did. But system still looking for missing EIN number, I had to enter 99-9999999

to get rid off the dignostic.   You highted State section, do I need to fill out state ID?

By the way I am in 2018 return, hope 2019 fixed that

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itonewbie
Level 15

@skyworks It works for all years.  I just tested that myself in case there has been any change.

You should not enter dummy EIN to get around this.  EIN should simply be left blank.

There is no need to enter a state EIN either.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

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skyworks
Level 4

I am sorry to come back, if I leave EIN blanck, then I got the dignostics

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itonewbie
Level 15

Please copy the exact diagnostic message or messages you have here.

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Still an AllStar
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skyworks
Level 4

Hi i figured out enter foreign compensation under other Foreign earned income instead of Foreign wages section.

this is very important.

thanks!

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itonewbie
Level 15

Glad your problem is resolved.  But just for the sake of other users who may be reading this later, all you need do to avoid the CD for EIN is to follow the instructions given in the earlier post for Foreign Employer Compensation.

Wages are meant to be entered under the Foreign Wages section while other payments and benefits are entered under the Foreign Allowances, Reimbursements, and Other Earned Income section.

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Still an AllStar
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lisacslater
Level 2

I filed my US Resident Foreign Income on a W-2 with no EIN and had ProSeries skip the error checking...

The return was rejected:

Error Detail:
This return could not be processed for e-filing due to incorrect or missing employer EIN or incomplete employer business name.

Error Resolution:
For each W-2, Wage and Tax Statement, verify that the Employee SSN, Employer ID Number (EIN) and Employer Name are entered correctly.

The Employer Name is entered correctly.

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willie3
Level 2

This is not an acceptable solution for all taxpayers. If Form 2555 is included with the return, even if claiming zero FEIE after an adjustment, then Schedule 8812 Additional Child Tax Credit and retirement account contributions will not be permitted, with the added problem that manual overrides of ACTC on 8812 are also not permitted with an e-filed return. Not everyone wishes to or is permitted to use form 2555, such as in cases when the election has been revoked.

With Lacerte 2020 41.0428 it does not appear that a missing FEIN causes a diagnostic failure. I'll soon see how the Service replies when I e-file the next return.

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TGCPA
Level 1

Hi, I am using proseries 2020 trying to enter foreign income for a client.

I entered the income as wages using the W-2 worksheet, but it is making me enter an EIN and giving an error for e-filing. The foreign entity does not have an EIN seems like I can't leave it blank. 

How do I e-file without an EIN or where do I enter the foreign income so it goes on line 1 as wages on the Form 1040.

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skyworks
Level 4

Thank you again, I did checked the box and selected country as you indicated - dignostics still there.

I am in 2018 return, hope 2019 will not show this

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