There are certain requirements that must be present on a Form W-2 Wage and Tax Statement (or Form 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.), including the Employer Identification Number (for a Form W-2) or Payer's Federal Identification Number (for a Form 1099-R).

If the income is foreign income, and you did not actually receive a Form W-2 or Form 1099-R, then you should not fill out those forms in the program. You should instead complete the FEC (Foreign Employer Compensation) worksheet. This income will appear on Form 1040 U.S. Individual Income Tax Return, Line 1 (if entered in the Foreign Employer's Compensation Amount field) or Form 1040, Line 5 (if entered in the Foreign Pension Received or Taxable Amount of Foreign Pension fields).

To enter foreign wages or foreign retirement income reported to a taxpayer by means other than a Form W-2 or Form 1099-R in the TaxAct^® program:

Foreign Wages

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal)
2. Click the Wages and Salaries dropdown, then click Wages from a foreign employer - not reported on Form W-2.
3. Click + Add Form 1040 FEC to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
4. Continue with the interview process to enter your information.

Foreign Retirement Income

1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal).
2. Click the Retirement Plan Income dropdown, then click Foreign pension distributions.
3. Click + Add Form 1040 FEC to create a new copy of the form or click Edit to edit a form already created (desktop program: click Review instead of Edit).
4. Continue with the interview process to enter your information.

The FEC worksheet is not an IRS form, but is a worksheet only in the TaxAct program used to collect the information and transfer it to the appropriate place on the return. All information entered on the worksheet is transmitted with the return if it is electronically filed. If the return is paper filed, there is no documentation required to be sent with the return. The IRS will contact the taxpayer if they need any additional information on the amount entered on the return for foreign wages or foreign retirement income.

If want to print the FEC worksheet to mail with your return anyway, go to our Printing Your Return and Individual Forms FAQ.

Related Links

• Foreign Earned Income Exclusion and Foreign Tax Credit (or Deduction)

Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.