[narvik]

Hello.

I've been reading some posts that are similar to my situation, but either the exact question wasn't answered, or I am still confused.

Situation:
- I am a US Citizen
- I worked for two separate companies in 2008, both of which supplied a W2 (no prob there)
- I also worked in China for a Chinese [joint venture] company off-and-on, traveling back and forth between China and USA. I have a Chinese work permit, and received a wage from May to December, from which Chinese taxes were subtracted
- Before receiving a fixed wage in China, the Swiss company transferred monies (wages) to my US account.

The questions:
How AND WHERE do I declare the Swiss transferred amounts, and how and where do I declare the Chinese wages on my US tax return.
I've been using TaxCut for the last 10 years, and it's always been much simpler than this time.

So far, I believe I simply fill out the existing W2 for the US earned wages, and "add two more W2s" and click NON-STANDARD W2 for the Chinese and Swiss earned monies? And then also fill out a 1116 form to get back the taxes already paid to China.
The main confusion is as to where to actually put the Chinese and Swiss earned amounts.

Does that sound about right?

[MukatA]

You will add your chinese wages with your W2 wages on line 7 of Form 1040. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income

[narvik]

Thanks for the answer.

Although, since I am using TaxCut to file my return, I am not quite sure how to proceed.

Like I mentioned: I simply fill out two more W2s? One for the wages earned and paid abroad, the other for the wages earned abroad but paid in US?

And then I also fill out a 1116 to claim back taxes paid in China?

[narvik]

Also, I just realized another issue: what about STATE taxes? (Pennsylvania).

Do I have to pay the full amount of the foreign earned income (which is transferred over from the W2 of the federal tax form)?

I seem to be getting a refund from the federal govt, but PA wants some more taxes.

[MukatA]

If you are resident of PA, your worldwide income will be taxed and you do not get foreign tax credit.

[narvik]

If you are resident of PA, your worldwide income will be taxed and you do not get foreign tax credit.

Thanks for the reply.
I did some more digging, and looked at all the options; turns out, apparently

I CAN DEDUCT FOREIGN PAID TAXES:

PA SCHEDULE G-S
3. Income subject to tax in the other state or country
4.b. Tax paid in other state or country
5. Line 3 x 3.07%
6. PA Resident Credit.

Basically it gives a credit for foreign paid taxes, whether another state OR ANOTHER COUNTRY.

This also works within TaxCut.

[HelpneededSos]

Hello,
I am having the same thing. No W2 but with tax withheld income from a foreign Country, I am wondering what to do.
Do how did that work for you? What did you end up doing?
Thanks