FEC Worksheet - Entering Foreign Earned Compensation in the Program
1
If you received foreign income that was not reported on Form W-2 or Form 1099-R, complete the FEC (Foreign Employer Compensation) worksheet. The foreign income will be carried to Form 1040, Line 1a or Line 5, depending on the type of income.
To enter foreign wages or foreign retirement income, follow the steps below.
Foreign Wages
Online
Dashboard
From within your TaxAct return, click Income.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Wages & Salaries drop-down.
Click Add beside Wages & Distributions from a Foreign Employer.
Complete the rest of the interview process.
Classic
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Wages and Salaries drop-down, then click Wages from a foreign employer - not reported on Form W-2.
Complete the rest of the interview process.
Desktop
From within your TaxAct return, click Federal.
Click the Wages and Salaries drop-down, then click Wages from a foreign employer - not reported on Form W-2.
Complete the rest of the interview process.
Foreign Retirement Income
If the income is Canadian benefits that are treated as US Social Security Benefits, see Canadian Retirement Income instead.
Online
Dashboard
From within your TaxAct return, click Income.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Wages & Salaries drop-down.
Click Add beside Wages & Distributions from a Foreign Employer.
Complete the rest of the interview process.
Classic
From within your TaxAct return, click Federal.
On smaller devices, click the menu at the top left corner of your screen, then make your selection.
Click the Retirement Plan Income drop-down, then click Foreign pension distributions.
Complete the rest of the interview process.
Desktop
From within your TaxAct return, click Federal.
Click the Retirement Plan Income drop-down, then click Foreign pension distributions.
Complete the rest of the interview process.
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.