Taxpayer worked in Japan only has letter saying the amount they earned in yen. I know how to convert to dollars but how do you enter on return? Do you do a substitute W-2?
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No, don't prepare a substitute W-2.
The person's Japan income, in USD, is taxable on his U.S. tax return. However, it may or may not be subject to Social Security and Medicare taxes ... and probably is not. The person may qualify to exclude up to (approx) $100,000 of his foreign earned income. I suggest you see Pub 54 and/or F-2555 (and instructions) to see if he qualifies.Roland Slugg
"I do what I can." -
No W--2
thank you for your response. Will follow your advice.Comment
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First step, find an online currency exchange rate site and convert yen to dollars.
Next step, enter the dollars on line 7 of form 1040.
Third step see if form 1116 or 2555 is applicable.Comment
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