Reporting income earned from foreign government

[ejdtaxman]

I have a US citizen client who works for the Permanent Mission of Sweden to the UN. 

I have already determined that she is not subject to social security tax because of the bilateral SS agmt btw US and Sweden. 

But I still need to report the income. IRS website and everything else I read merely says to report as wages on the 1040, and in some places box 7 is mentioned. However box 7 is for capital gains so that seems totally irrelevant. 

If I create a W2 to try to list as wages I run into the issue of having no EIN. 

If I list merely as "other income" on schedule 1 this also seems incorrect. 

Anyone with any experience with this please provide some guidance, it would be greatly appreciated. 

thanks! 

[TaxGuyBill · Accepted solution]

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@ejdtaxman wrote:

IRS website and everything else I read merely says to report as wages on the 1040, and in some places box 7 is mentioned. However box 7 is for capital gains so that seems totally irrelevant. 

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I'll take your word that is the correct treatment.

Before 2018, "wages" were always on Line 7 which is why some older thing may have said Line 7, but now they are on line 1.

On the 1040Wks, double-click the blank area in the middle (between the words and the line where the dollar amount shows up).  That will open up a Wages Worksheet, and you can enter it on there (such as foreign wages or something like that).

[ejdtaxman]

wow. how incredibly oblique. 

I would never have seen this unless someone told me to look here. 

thank you!

[goalen]

If it's not wages but self-employed income with bilateral agreement? How I can enter in the software that i am an exempt without overriding?