How do I report my clients income as foreign earned income when they get a 1099 misc form for their income

3 replies
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My client is an overseas missionary. Their income is reported on a 1099-MISC form rather than a W2. When a client gets a W2 there is a box to check in Proseries indicating it is foreign earned income. There is no such box that I can find when reporting income on a 1099.

ProSeries Basic

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itonewbieAnswer

Level 15

§911(d)(6) dictates that adjustments for deductions allocable or chargeable to the exclusion be made on Line 44. Gross income is reportable on Line 20a.

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itonewbie

Level 15

Instead of relying on a checkbox to flow the details to F.2555, you will need to make the input for the income along with the sourcing code on 2555 Inc Wks-T instead. You'll complete the rest of F.2555 as you usually do with others.

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J

JRTAuthor

Level 2

Not sure I follow. They have a schedule C with detailed expense deductions. Where do I put that on form 2555?

itonewbieAnswer

Level 15

§911(d)(6) dictates that adjustments for deductions allocable or chargeable to the exclusion be made on Line 44. Gross income is reportable on Line 20a.

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

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