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Step 2: Organize Your Income

Before completing your tax forms, separate your income sources clearly. Your income type helps determine which forms, schedules, exclusions, credits, and reporting rules may apply.

Income Type Drives the Filing Path

Employment income, self-employment income, business income, investment income, rental income, pension income, and other income are not always handled the same way.

This step helps you sort your income before moving into forms like Schedule C, Schedule SE, Form 2555, Form 1116, and Form 1040.

Income Organizer

Estimate or enter your total income for the year in each category. This is a simple organizing tool, not a tax calculator.

Why This Step Matters

Different types of income may flow to different parts of your return. Organizing income first helps prevent confusion later when you review FEIE, FTC, Schedule C, Schedule SE, Form 1040, and foreign account reporting.

For example, employment income may connect to Form 2555 or Form 1116, while self-employment income may also require Schedule C and Schedule SE.

Self-Employment Income Needs Extra Attention

Self-employment income is treated differently from employee wages. Even if FEIE reduces regular U.S. income tax, self-employment tax may still apply.

If you freelance, consult, run a small business, or work as an independent contractor abroad, review the self-employed pathway carefully.

Common Income Categories for Expats

What to Review Next

After organizing income, move to the page that best matches your situation.

Next Step: Match Income Type to Filing Path

Once your income is separated, the next step is identifying whether you are mainly an employee, self-employed, a foreign business owner, or someone with mixed income sources.

Use the Decision Flow →