Part I (continued)
Line 1a: Allocation of Income
Some taxpayers are compensated for services performed partly within and partly outside of the U.S. When you cannot segregate their compensation, you apportion the income on a time basis.
- Use general category income for wages and salaries
- Determine how much of that income should be considered foreign source by multiplying it by this fraction:
Number of days worked outside the U.S. for that income |
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X total compensation = Foreign Income |
Total days worked for that income |
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