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 assignment
2
: 100% U.S. during assignment
3
: U.S. and foreign days worked during assignment
4
: U.S. and foreign days worked before / after assignment
5
: Days worked before, during and after assignment
Foreign 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.
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