My son received a small foreign income from an overseas internship last summer. He also had foreign income tax withholding. Since I do his taxes, I was wondering if anyone has had a similar experience including foreign income in filling taxes, and how this is treated for tax purposes. Does this fall under “Other income?” What about his withholding? He worked for nearly three months in a country with a tax treaty with the U.S.
Unless he meets the standard for a “bona fide foreign resident”, then he owes taxes on all the overseas earnings.
He is expecting to pay taxes on the foreign income, just wondering where on the 1040 this income is declared. I’m thinking “Other income” but not sure. Also, is he able to receive credit for the foreign income tax withholding, and again, where would that be entered on the form?