Does my employer’s foreign location change what I have to report on my U.S. tax return?

No. U.S. citizens and green card holders report all worldwide wages on Form 1040 regardless of where their employer is located. Foreign employers do not issue W-2s, so you calculate and convert your earnings yourself and report them on Line 1 along with any U.S. earnings.

How foreign wages flow onto your return:

• Gross foreign wages in U.S. dollars reported on Form 1040 Line 1a
• Any foreign withholding (income tax, social security) is tracked separately
• FEIE (Form 2555) or FTC (Form 1116) is applied to relieve double taxation
• Self-employment tax is calculated separately if the employer is a misclassified contractor arrangement

Currency conversion:

• Use the yearly average exchange rate from the IRS or a consistent monthly average
• Document your method and apply it uniformly across years
• Report amounts in U.S. dollars always

Because foreign employers do not issue W-2s, withhold U.S. taxes, or provide U.S.-formatted pay stubs, you are responsible for reconstructing your wage total from foreign pay slips. If you previously had a U.S. employer and are missing a W-2 from a prior year, you can request it from your old employer or file Form 4852 as a substitute. If you need to file without a W-2 entirely, use your final pay stub or foreign pay records to estimate gross wages.

What you must still track and report:

• Bonuses, stock options, RSUs, and ESPP granted by foreign employers
• Fringe benefits (housing allowances, cost-of-living adjustments)
• Pension contributions from foreign employers (generally taxable as wages in the year credited, unless treaty-protected)

If your employer is a U.S. entity or a foreign affiliate with a Section 3121(l) agreement, you may receive a regular W-2 with FICA withheld. Otherwise, expect to build your wage total from foreign pay slips.

If you’re on a corporate assignment abroad, Greenback can help sort out the reporting.