Screen FEC - Foreign Employer Compensation (FEC) (1040)

Form FEC - General Information

Use this section to enter the required foreign employer address and, if different from the 1040 screen, the employee’s address while performing the services.
For proper state processing, enter the appropriate state postal code.
These codes are specific to the state postal code in the
State
field and are the same as those in the
State use
fields in the 1099M and Income screens. (Note that all codes are not applicable to foreign employer income, however.) If state use codes are not applicable to the selected state, this field is inactive.
The custom fieldview in the
Foreign street address
field is also available on the 2555 screen in the
Employer’s address: Foreign address
statement.
Enter the employee’s U.S./foreign address when they performed the services, if different from the 1040 screen. If blank, the fields use the 1040 screen address. If the
Foreign country code/name
fields have data, the state/zip code fields are inactive. If the state/zip code fields have data, the
Foreign country code/name
fields are inactive.

Form FEC - Income

The compensation amount reports as federal taxable wages and on the Foreign Employer Compensation (FEC) record, which is required for electronic filing. Additional information is required in the 1116, 1116CO, 2555, and 2555-2 screens to report this activity on Forms 1116 and/or 2555.
This amount reports as federal taxable wages and must be entered here to include the Foreign Employer Compensation (FEC) record in the electronic file. Do not use this field for foreign employer pension amounts (use the 1099R screen instead) or FEC from the 1099M screen. For more information, see the Enter foreign pension information (1040) article.
The Form 2555 Allocation Worksheet uses this code when reporting the allocation between U.S. and foreign earned income, including any related self-employment items. For Form 1116 Foreign Tax Credit eligibility, foreign earned income is reported, less any applicable Form 2555 exclusion.

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