UK and US return

[Zee]

I have a client that's a US Citizen who moved to the UK November 1st on a 3-year work permit to join a partnership. During 2008, he was treated as an employee and UK Income Taxes and UK Social Security taxes were deducted from his pay in Pounds. On January 1st, 2009 he was made a partner and is currently receiving draws.

My understanding is no tax return is required if you have taxes deducted as an employee under the Pay As You Earn (PAYE) system in the UK, unless other situations exists (not in this case). When a tax return is due, the filing deadline is October 31st of the following year. Self-employed persons and partners do need to file a tax return.

No W2 or like form was received from the UK employer, so my client only has check stubs showing the deductions.

My question is this:

Will the IRS accept the calculation or credit for foreign taxes paid without a W2 or like form from the UK?

If so, I use Drake and have no idea how I will enter the UK Social Security taxes and UK Income tax on the screen (I'll have to find out how to do this after converting the amounts to dollars). I would also hope he'd get a credit for UK SS taxes paid. Post note: Do I enter the income on Form 1116 and the taxes withheld on Form 1116, Line (n) & (r). If so, do I enter the total UK SS taxes and income tax,or just the income tax?

I'm kinda mixed-up here. I guess I've never worked with a foreign tax credit situation involving wages before only dividends and interest.

[Uncle Sam]

UK/US Return

For many years I dealt with a situation like this - except in reverse.
I have a U. S. citizen who moved and got married in England.
(About 3 years ago - she and her husband moved back to U.S.)

The UK tax return is based on an April 4, fiscal year. (Don't know when the filing deadline is)

I always entered data on a schedule, converting British Pounds to US Dollars, for each type of income and foreign tax paid for data entry on the 1040.

IRS has never corresponded questioning any calculations.

[Zee]

Where is the foreign wage income & taxes withheld entered on the US return?

Where is foreign wage income entered using Drake SW, or maybe other SW as well?

Do I enter the Wage Income on Form 1116 and the UK Income taxes withheld on Form 1116, Part II, Line (n) & (r)?

What about the UK Social Security taxes that were deducted for the US Citizen, are they deductible as credit on the US return? If so, are they also entered on Form 1116, Part II Line (n) & (r)?

The Form 1116 instructions don't say what Line (n) & (r)are used for except it's an "other" category.

[Uncle Sam]

UK and US Return

Foreign income gets reported on Form 2555.
For 2008 your client will not meet the qualifications for the exclusion.
You take credit for foreign taxes paid on Form 1116.