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Reporting foreign wages for an individual return in Lacerte

by Intuit3 Updated 5 months ago

Follow these steps to report foreign wages on Form 2555 or 2555-EZ:

  1. In Screen 31, Foreign Income Exclusion (2555), locate the Employer subsection.
  2. Enter the Name.
  3. Select Foreign Wages from the left navigation panel.
  4. Enter the Employer Name.
  5. Select the Form 2555 Name or Number from the drop-down menu (this will tie Screen 31.1 and 31.2 together).
  6. Complete all applicable information
    • Wages (Ctrl+E for Allocation Method)
    • Federal W/H (if applicable)
  1. Click on the Detail tab.
  2. Select Screen 10, Wages, Salaries, Tips.
  3. Under the section Employer Information, check the box Foreign Address.
  4. Enter the Company NameStreet addressCityRegionZIP code, and Country.
  5. Enter the amount of Wages received.
  6. Scroll down to the Electronic Filing (W-2) section of Screen 10.
  7. Check the box Compensation not reported on W-2 (code 69) in the Foreign Employer Compensation sub section.
  8. If they lived in the US while performing the work, check the box Employee performed services while residing in the US (code 70).
  9. If there is an EIN enter that EIN in the Foreign Employer's Tax Identification Number field (code 813).

Note: This information can also be entered on Screen 31.2, Foreign Income Exclusion (2555) if you intend to exclude the income through Form 2555.

Additional information:

  • You must select an allocation method in Allocation. Lacerte uses this entry to determine how to allocate wages between U.S. and foreign earned income. If an element of income needs to be allocated using two different allocation methods, press CTRL+E to open the expanded input screen for that item of income. Here, you can enter multiple occurrences of that element with different allocation methods.
  • Foreign Wages should not be entered on Screen 10, Wages, Salaries, Tips, etc. unless the Taxpayer/Spouse does not qualify for the Foreign Income Exclusion.
Lacerte Tax

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