Entering foreign wages not excluded from income in ProConnect Tax

To report foreign wages not excluded from income:

1. Go to the Input Return tab.
2. On the left navigation menu, select Income ⮕ Wages, Salaries, Tips (W-2).
3. Enter the Employer Information.
4. Enter any Wages or other information reported.
5. Scroll down to the Electronic Filing (W-2) section.
6. Locate the Foreign Employer Compensation subsection.
7. Check the box Compensation not reported on W-2.
8. Either check the box Employee performed services while residing in US or select the Country code if work not performed while residing in US from the drop-down menu.
9. Enter the Foreign employer's tax identification number (if applicable).

Wages will show on Form 1040, and the program will transmit Form FEC (Foreign Employer Compensation) in the e-file to support the amounts reported.

To report the associated taxes paid with foreign wages (if applicable):

1. Go to the Input Return tab.
2. On the left navigation menu, select Credits ⮕ Foreign Tax Credit (1116).
3. Locate the Income From Sources Outside U.S. section.
4. Select the Name of foreign country.
5. Select the Category of income.
6. Scroll down to the Gross Income Within Country section.
7. Locate the Other Foreign Source Income subsection.
8. Enter the Description and Amount*.
9. Click OK.
10. Scroll down to the Foreign Taxes Paid or Accrued section.
11. Locate the U.S. Dollars subsection.
12. Enter the amount in Other foreign taxes.

Form 1116 will generate showing the calculation of the foreign tax credit. The calculated credit will flow Form 1040.

Note: Amounts entered as foreign source income here will only affect Form 1116. Income will not be duplicated on the 1040.