# TaxAct: Error



## miky348

Hi,

I have wages and interest income outside of US. When entering data into 1040 using TaxAct:

#7: Do I complete a W-2 (fill: Foreign employer name & wages) OR just enter the wages directly into #7? I ask because TaxAct gives error on overriding and disables efiling?

#8a: Similarly, do I complete a 1099-INT (fill: Foreign payer's name & interest income) OR just enter the interest income directly into #8a? 

thx


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## Bevdeforges

No on the first question. For foreign income, you do NOT fill out a W-2 - there is a separate form. On the question that asks if you have salary income, be sure to scroll all the way down the page and find a check box or something to indicate that it is foreign salary or that you do not have a W-2 for the salary. That should pop up the form you use instead of the W-2, though it can be tricky to find it in the program.

For the 1099's (not just INT, but any) you just fill in what you can of the 1099 they give you. (You don't include 1099's with your return anyhow - it's just an informational form.)
Cheers,
Bev


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## miky348

Its still W-2, the Q&A screen did ask about employer's country (NOT a checkbox). But once done with Q&A, it saves into a regular W-2, unless we are talking about different screens.


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## Bevdeforges

When I did my filing last year, there was a special page for Foreign Employer Compensation and Pensions and the form you are supposed to fill out instead of a W-2 is called a "1040/1040NR FEC"
Cheers,
Bev


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## FFMralph

TaxAct instructions:
You should complete the *Form FEC Foreign Employer Compensation.* This income will appear on Form 1040, Line 7.
To enter foreign wages reported to a taxpayer by means other than a W-2 in the TaxACT program:
1. From within your TaxACT return (Online or Desktop), click on the*Federal Q&A tab
2. Click*Wages and Salaries to expand the category, then click*Wages from a foreign employer - not reported on Form W-2 
3. Click Add to create a new copy of the form or click Review to review a form already created 
4. The program will proceed with the interview questions for you to enter or review the wage information.*

To report foreign interest*income, enter the information as though you had received a *Form 1099-INT*, but leave off the Payer's Federal Identification Number. 
To enter Form 1099-INT Interest Income into the program when it is to report foreign interest and an ID number is not available:
1. From within your TaxACT return (Online or Desktop)*click on the Federal Q&A tab 
2. Click Investment Income to expand the category and then click Interest Income (Form 1099-INT) 
3. Click Add to create a new copy of the form or click Review to review a form already created 
4. Click Quick Entry or Step-by-Step Guidance to enter or review*the information. 
a. If you select Quick Entry to enter the information directly on the supporting form, be sure to scroll down to answer all applicable questions.* When done entering the information, click the Red X in the top right corner of the form to save*the information and close the form. 
b. If you select Step-by-Step Guidance, the program will proceed with the interview questions for you to enter or review the appropriate information. On the screen titled Interest Income - Payer's Name, leave*the field for Payer's identification number blank. Click Continue to enter the other information regarding the foreign interest income
If you paid foreign income taxes, continue to the screen titled Interest Income - Investment Expenses and Foreign Taxes to enter that information.* 

If you enter foreign taxes paid on either of these forms, the TaxACT program will automatically create a *Form 1116 worksheet*. You can review this information by following these navigation steps:
1. Click on the Federal Q&A tab 
2. Click Other Credits to expand the category and then click Foreign tax credit 
3. Click Created Input to review the worksheet which was*created based on the entries made above

TaxAct has a good Help section.


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