Foreign income outside the U.S.
Updated: 2026
If you had income outside the United States during the year, it is better to discuss it before filing, even if the money was not transferred to the U.S.
Foreign income
Foreign income may include wages, self-employment income, interest, dividends, rental income, sale of property, and other payments.
It is important to identify the source, country, currency, dates, and documents supporting the amounts.
When foreign income needs separate review
Wages, self-employment income, interest, dividends, rental income, sale of property, and foreign tax withheld may require separate review.
If you also had foreign accounts, that should be reviewed separately because FBAR / FinCEN questions may apply.
Documents
Useful records include account statements, income statements, foreign tax documents, currency details, and dates of transactions.
If documents are in another language, it is helpful to discuss what information they contain before preparation begins.
Why early review matters
Mistakes involving foreign income and accounts often happen because key facts were missing at the start.
It is better to review these issues before filing, rather than after an IRS letter or an amended return becomes necessary.