Enter the Form 2555 allocation code
Income earned during a foreign assignment is used to calculate the Form 2555 exclusion. Form 1116 reports foreign income earned before, during, and after the foreign assignment as eligible for the foreign tax credit. The Form 2555 Allocation Worksheet reports the distribution between U.S. and foreign earned income.
- Go to the1116window, then theCreditsfolder, and check the form and unit number.
- Go to theC,F,K1,W2,FEC, or1099Mscreen for the form and unit on the1116window.
- Select a Form 2555 allocation code.
