Question

income from another country

Forum|Forum|6 years ago
April 5, 2020
1 reply
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Hi,

I am filing my taxes but haven't lived in the US since Feb 2019. How and do I and do I need to put my income on there for working in the UK for last year. It will also be in pounds sterling.

Thanks!

SusanY1

You will need to report the income as foreign earned income, after converting it to U.S. Dollar equivalent. You can use this link to look up the IRS accepted conversion rate for pounds sterling for 2019: Yearly Average Currency Exchange Rates.

To report the income in TurboTax, you will find the entry area under Wages & Income, Less Common Income, Foreign Earned Income and Exclusion (FEIE).

You may either opt to see if you qualify to exclude the income from tax, or you can instead tax a tax credit for the taxes that you paid to the U.K. on the same income. You are allowed to use whichever method is more advantageous to you, but once you elect to use the FEIE you must continue to use this method each year in which you have foreign earned income. Failure to do so disqualifies you from using the exclusion for five years unless you request permission from the IRS.

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