Statement Of Earnings?

[SueBaby]

Client has just a Sheet of Paper of Statement of Earnings from working overseas in Cayman Islands.

It is $160,000 with just his retirement over $12,000 and his medical. No W2 and not withholdings. Do I put that on Other Income or form 1116? Where would I put his retirement? It is just a sheet of paper and doesn't say anything about IRS and the client said $71,000 does not go on his taxes because he worked in a country that the IRS "said" he doesn't have to put it on his taxes.

Have you heard this before and what do I do with this client along with his sheet of paper. Too tired to think about such heavy stuff now. Thank you for being there in my corner as always to help me out of a hole. (Sometimes I even dug it myself).

[BHoffman]

Also tired. The Caymans are lovely - went there last fall.

[Burke]

SueBaby, I hope you are keeping a journal. You should write a book when you retire. I have never seen clients with some of the situations which seem to seek you out. Anyway, is this guy a US citizen? Who is the company he is working for? And what does "the piece of paper" say about his "retirement" and "medical." Is this FICA and Medicare? I was assuming they were deductions, but maybe you mean additional income items? Who wrote out this piece of paper, is it on a company letterhead? He may be referring to the foreign income exclusion concerning the amount which he says is non-taxable, perhaps. I assume he was paid in US dollars. I have seen Statements of Earnings, but they are usually the paycheck information, and they may have Year-to-Date figures on them. They are not W-2's, and that is what you need if you can get it.

[SueBaby]

SueBaby, I hope you are keeping a journal. You should write a book when you retire. I have never seen clients with some of the situations which seem to seek you out. Anyway, is this guy a US citizen? Who is the company he is working for? And what does "the piece of paper" say about his "retirement" and "medical." Is this FICA and Medicare? I was assuming they were deductions, but maybe you mean additional income items? Who wrote out this piece of paper, is it on a company letterhead? He may be referring to the foreign income exclusion concerning the amount which he says is non-taxable, perhaps. I assume he was paid in US dollars. I have seen Statements of Earnings, but they are usually the paycheck information, and they may have Year-to-Date figures on them. They are not W-2's, and that is what you need if you can get it.

No, they do not issue a W2 at all. It is the company that gave it to him from Ensco from Dallas and only it has on it is : Compnsation $160,126 along with his retirement contributions (401-K) is $11,354 and his medical $5262. Nothing else. Never seen one and don't know what to do with it on the return without a W2!!!!! Thanks for any help with this matter. He lives in La. No FICA or Medicare either. THANKS

[SueBaby]

Client has just a Sheet of Paper of Statement of Earnings from working overseas in Cayman Islands.

It is $160,000 with just his retirement over $12,000 and his medical. No W2 and not withholdings. Do I put that on Other Income or form 1116? Where would I put his retirement? It is just a sheet of paper and doesn't say anything about IRS and the client said $71,000 does not go on his taxes because he worked in a country that the IRS "said" he doesn't have to put it on his taxes.

Have you heard this before and what do I do with this client along with his sheet of paper. Too tired to think about such heavy stuff now. Thank you for being there in my corner as always to help me out of a hole. (Sometimes I even dug it myself).

Putting this at top AGAIN to see if anyone out there has experience this before and what to do with this without a W2 or a 1099-R with his retirement working in the Cayman Islands????? Where do I put this? As other income? Called IRS said to put as wages on line 7 ----well you have to have a W2 to do that. IRS said has to have a 1099-R for retirement. I KNOW that but this does not have either. I have been going around and around with this all morning and really don't have the time. Any input about this would be GREATLY appreciated. THANKS AGAIN

[Burke]

From your addl post it appears that the "retirement" you are referring to is his 401K contribution. This is normally subtracted from gross wages to arrive at taxable wages for line 7. The "medical" amount appears to be medical insurance deducted from his pay, but you don't know whether it is pre-tax or after tax. Tell the client to call the company in Dallas to get the W2 you need to do his tax return. NOT YOUR PROBLEM. It is his responsibility to get the proper document. They may have sent it to him in the Caymans so he did not get it if he is back in the US. Ensco is a major off-shore oil and gas drilling company headquartered in Dallas and they have a website with all their info including phone number. Then you can determine if he qualifies for Foreign Earned Income Exclusion on Form 2555.

[ChEAr$]

Concur

with Burke. If his total compensation was 160,000, then that goes on the tax return.

Unless he has a W2 form you have no basis for concluding anything to the contrary.
"Retirement" is a meaningless term, nor is any $71,000 figure worth a darn.

[SueBaby]

From your addl post it appears that the "retirement" you are referring to is his 401K contribution. This is normally subtracted from gross wages to arrive at taxable wages for line 7. The "medical" amount appears to be medical insurance deducted from his pay, but you don't know whether it is pre-tax or after tax. Tell the client to call the company in Dallas to get the W2 you need to do his tax return. NOT YOUR PROBLEM. It is his responsibility to get the proper document. They may have sent it to him in the Caymans so he did not get it if he is back in the US. Ensco is a major off-shore oil and gas drilling company headquartered in Dallas and they have a website with all their info including phone number. Then you can determine if he qualifies for Foreign Earned Income Exclusion on Form 2555.

Thank you very much. I can't give him a 2555 (wish I could --save alot of headache) because of not enough days out. I did tell him to call co but they do not issue any W2s for working abroad. thanks again

[ChEAr$]

Ahah!

Thank you very much. I can't give him a 2555 (wish I could --save alot of headache) because of not enough days out. I did tell him to call co but they do not issue any W2s for working abroad. thanks again

Knowing this now, it's apparent this was 1099-misc income, don'[t you think? Yes,
SE tax also.

[Burke]

I don't think so, not with 401(k) contributions. I am not buying the argument that they don't issue W2's. Did he tell you this? Tell him to get it in writing.

[Snaggletooth]

1099-misc

I'm thinking this should be a proprietorship working in the Cayman Islands with no W-2. He does not say his retirement is a 401K - it sounds too big anyway. Retirement could just as easily be a SEP contribution, and might have been a cash basis contribution for 2007. Don't guess this guy would have a copy of his 2007 return, would he?

[SueBaby]

I don't think so, not with 401(k) contributions. I am not buying the argument that they don't issue W2's. Did he tell you this? Tell him to get it in writing.

On the paper it is a 401-K from the co and the co told me and the client they do not issue W2s out for foreign countries that they work in. How weird and fustrating!

[outwest]

Try pub 54 ..

starting on page 8 and see if your situation sounds familiar.