Foreign Income

[taxgul]

I have a customer that needs to file...income from Sweden and tax withheld. I have received a Income statement from employer form KU10. He is a resident of Notasulga, AL. Can anyone give me advice or references?

[appelman]

What's the problem?

He reports the income. If he was living there he might qualify for foreign earned income exclusion. Otherwise, he should be able to claim a foreign tax credit.

[Burke]

I Can anyone give me advice or references?

First, see Form 2555 and instructions. Then Form 1116 & same. These will give you a good start (and may be more than you need) to make a determination as to how to proceed.

[ardi600]

I agree with both posts above

I would try first to see if your client meets one of the tests(bona fide resident or physical presence test), to exclude foreign income. The latter is usually easier to qualify the client for. Now, be careful about SE tax when you exclude income. there are situations where the excluded income would be subject to se tax.