Tax Tips: Do I have to report income from a foreign country?

Quite simply, yes. All income must be reported to the IRS, no matter which country it came from. This includes wages, interest, dividends, capital gains, pensions, rent, and royalties. The IRS wants its cut of the taxes on those items, so you're required to report them. (There are a few exemptions, but don't count on any of them applying to you.)

If you live outside the United States and have foreign earned income, you might be able to exclude $85,700 of that income from being taxed. But there are lots of rules to follow, and you likely may need help from a tax professional. If you're living in the U.S. and have foreign income, that exclusion doesn't apply. However, if you've paid taxes on your foreign income in the foreign country, you may be able to take a tax credit for that here.

Tracy L. Coenen, CPA, MBA, CFE performs fraud examinations and financial investigations for her company Sequence Inc. Forensic Accounting, and is the author of Essentials of Corporate Fraud.

Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.
Sending Kids to College
TurboTax can help you take advantage of tax breaks to ease the financial burden of sending kids to college, including tax credits, tuition deductions, tax-free savings and more.
Read MoreBrought to you
Inflation Reduction Act of 2022: What it Could Mean for You and Your Taxes
The Inflation Reduction Act passed the House of Representatives and is in route to be signed into law by the President. Check back with the TurboTax blog for more up to date information and to find out when the bill is signed into law and what it means to you.
Read MoreBrought to you
Form W-9 - What Is It and How Is It Used?
Form W-9 is a commonly used IRS form for providing necessary information to a person or company that will be making payments to another person or company. One of the most common situations is when someone works as an independent contractor for a business. When you are hired as a contractor for a business or beginning work as a freelancer, you may be asked to complete a W-9 and provide it to the business that will be paying you.
Read MoreBrought to you
What to Expect Tax-Wise from Your Summer Job
You won't know what to expect tax-wise from your summer job unless you consider factors other than how much you earn.
Read MoreBrought to you