Force fields for foreign income
Use the
Form 2555 allocation code
field to classify income and deductions as foreign-earned. Foreign income and deductions appear on Form 2555 and/or Form 1116. The following screens contain Form 2555 allocation fields: FEC
,1099M
, W2
, C
, F
, K1
, 2106
, and 3903
. Enter or select the code for the correct allocation.The following foreign-earned income allocation codes are available:
1
: 100% foreign during assignment2
: 100% U.S. during assignment3
: U.S. and foreign days worked during assignment4
: U.S. and foreign days worked before / after assignment5
: Days worked before, during and after assignmentForeign income earned during the assignment is part of the calculation of the Form 2555 exclusion. Form 1116 reports foreign income earned before, during, and after the foreign assignment, minus any exclusions. Form 2555 Allocation Worksheet reports the allocation between U.S. and foreign-earned income. Use the activities allocation code to allocate any self-employment items.
