When income is reported by a foreign employer on a form other than a Form W-2 or 1099-R (both of which require an employer identification number in order to e-file), use Form FEC, Foreign Employer Compensation to report the income on the taxpayer's tax return. Form FEC is not a viewable form, but when the information is entered as Foreign Employer Compensation, the program creates FEC records that are electronically filed with the tax return and identified as FEC income to the IRS. This income is included in income on Form 1040.
To enter Foreign Employer Compensation (FEC), from the Main Menu of the Tax Return (Form 1040), select:
- Income Menu
- Wages, Salaries, Tips (W-2) or IRA/Pension Distributions (1099R, RRB-1099R)
- Select the Other button
- Foreign Employer Compensation
- Select New
- Enter all required information (All information is required to be filled in except the Foreign Employer ID Number)
NOTE: This is a guide on entering Foreign Employer Compensation into the TaxSlayer Pro program. This is not intended as tax advice.