How to Report Worldwide Income to the IRS

The latest version of the IRS form 2555 which is known as the UFED Tax Credit Certificate is a nine page form that has been prepared by the Internal Revenue Service for its foreign earned income exclusion. The first step of this process is to fill in the information about your home country or countries and any foreign earned income. This includes the amount of taxes you paid to the government in your home country and any pension or social security payments you received in other countries.

report worldwide

The next step in this process is to state if the foreign earned income exclusion applies to you. The form can be completed online through a secure website. If you are making a tax return for your work outside the United States, then the tax credit certificate cannot be used unless you provide a copy of a non-immigrant visa such as a green card. There are some exceptions to this requirement including members of the US National Security Agency and members of the American navy who are on leave of absence, or those who are on active duty.

The third step in the process is to sign the back of the form. This is done electronically. You will receive a notice in the mail that requires you to print a return. Print this return and file it with your tax return. If you do not complete this step, the IRS can consider the tax credit certificate as an error. Therefore, make sure you complete the process.

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