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Level 3
July 10, 2020
Solved

Foreign Earned Income - Employee contribution to pension plan b4 tax

  • July 10, 2020
  • 2 replies
  • 34 views

Hello team,

My client works overseas for a foreign US affiliate in oil and gas. She is a bonafide resident of that country and her tax home is in that country. She contributes part of her pay to a company pension plan before income tax. Can I use the "taxable wage" (grosss Income less employee pension contribution) as the foreign income on  the 2555 form and possibly the FTC 1116 form? Or must I use the Gross Income amount?

I have looked at some publications like pub 54, and I don't see anything that says I can do it, nor do I see anything that says I cant do it. Please your wisdom is appreciated.

thanks

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Best answer by sjrcpa

Gross. Unless you have proof that the pension plan is a US 401(k) or SIMPLE plan.

2 replies

sjrcpa
sjrcpaAnswer
Level 15
July 10, 2020

Gross. Unless you have proof that the pension plan is a US 401(k) or SIMPLE plan.

The more I know the more I don’t know.
Akinofe67Author
Level 3
July 10, 2020

It sounds gross, but I'll take it. Thank you.