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Old 20.09.2020, 16:38
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Foreign Income for US Taxes

Hi All,


I was wondering if anyone would know if the 'foreign income' that the US demands to know on the 1040 is the net or gross income?

Specifically, for a salaried employee in Switzerland, there are obligatory deductions for AVS and pensions. This reduces the income that you receive by a few thousand Swiss Franks. These are not tax payments in the strictest sense.

Does anyone know if the US gov - the IRS - considers the income after these charges to be 'foreign income'? Or does the IRS consider the income before these charges i.e. the gross income to be the 'foreign income'?

There must be some Yank out there who has had to deal with this awful stuff.


Thanks in advance,
Kevin
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Old 20.09.2020, 17:30
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Re: Foreign Income for US Taxes

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Hi All,


I was wondering if anyone would know if the 'foreign income' that the US demands to know on the 1040 is the net or gross income?

Specifically, for a salaried employee in Switzerland, there are obligatory deductions for AVS and pensions. This reduces the income that you receive by a few thousand Swiss Franks. These are not tax payments in the strictest sense.

Does anyone know if the US gov - the IRS - considers the income after these charges to be 'foreign income'? Or does the IRS consider the income before these charges i.e. the gross income to be the 'foreign income'?

There must be some Yank out there who has had to deal with this awful stuff.


Thanks in advance,
Kevin
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