I have been benefiting from this board a lot and wish to receive some feedback from you.
Thanks, in advance.
A client has been in the States from November 2005 to present.
During the time, he was on a L visa status along with his wife and two children.
As far as his tax status is concerned, he is considered a resident alien meeting the substantial presence requirement, correct?
His income during 2006 consisted of the following:
Income received from company he started in US in June 2006 = $18,000
(all payroll taxes were paid)
During 2006, he received income from company in foreign country while setting up the company in US. He said he received appr. $41,000 and paid appr. $11,000 in taxes in Korea.
My question is:
1. How do I report his income received from foreign company, using which form? Do I input it as "other income"?
2. As far as receiving foreign tax credits he paid, i think only income taxes he paid should be calculated and used for foreing tax credit purposes, correct?
3. Does he need to attach something for the income received from foreign company to report income and receive credit for the foreign taxes he paid?
Thanks.
Thanks, in advance.
A client has been in the States from November 2005 to present.
During the time, he was on a L visa status along with his wife and two children.
As far as his tax status is concerned, he is considered a resident alien meeting the substantial presence requirement, correct?
His income during 2006 consisted of the following:
Income received from company he started in US in June 2006 = $18,000
(all payroll taxes were paid)
During 2006, he received income from company in foreign country while setting up the company in US. He said he received appr. $41,000 and paid appr. $11,000 in taxes in Korea.
My question is:
1. How do I report his income received from foreign company, using which form? Do I input it as "other income"?
2. As far as receiving foreign tax credits he paid, i think only income taxes he paid should be calculated and used for foreing tax credit purposes, correct?
3. Does he need to attach something for the income received from foreign company to report income and receive credit for the foreign taxes he paid?
Thanks.