Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 05-02-2016, 01:33 PM
Junior Member
 
Join Date: May 2016
Posts: 4
Foreign Earned Income Exclusion

I currently work from home for a U.S. employer. I work from home 100% of the time, all I need is internet and my laptop. I can travel and work from literally anywhere in the world (and i have!).

I recently found out about the Foreign Earned Income Exclusion where if you work abroad for almost a year you may qualify for this. I've done a lot of reading and looked at the examples from here:

https://www.irs.gov/Individuals/Inte...come-Exclusion

Most of these examples are employer initiated the employee to move due for business reasons... but what if I decide to move and not employer initiated? Would I still qualify? My employer will be notified and they are ok where I live as long as I can fulfill my responsibilities. I can still meet all requirements having a bonafide residence, join local clubs abroad, establish my residency there ....

Please advise =)



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 05-02-2016, 04:13 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Most of these examples are employer initiated the employee to move due for business reasons... but what if I decide to move and not employer initiated? ====>You mean as a self employer ? Then yes;as a qualifying individual, you may claim the FEEC on your foreign earned self-employment income. The excluded amount will reduce your regular income tax, but will not reduce your self-employment tax. I mean you still must pay self employment taxes to IRS. Also, the foreign housing deduction instead of a foreign housing exclusion may be claimed.

Would I still qualify? ====>as mentioned above.

My employer will be notified and they are ok where I live as long as I can fulfill my responsibilities. I can still meet all requirements having a bonafide residence, join local clubs abroad, establish my residency there ....=====>as said; to claim the FEEC, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income,I mean either W2 or Sch C income tha t you earn oversdeas, your tax home must be in a foreign country; you are a bona fide resident of a foreign country / countries for an uninterrupted period that includes an entire tax year; you are physically present in the foreign country for at least 330 full days during any period of 12 consecutive



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 05-03-2016, 02:21 AM
Junior Member
 
Join Date: May 2016
Posts: 4
not not as self employed. I am a "work from home" employee working for a company. i can work from anywhere....i decide to live overseas and "work from home" there. i am still with the same employer. sorry if i didnt make that clear... i will still get paid by my employer from the u.s.

that being said, would I qualify?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #4 (permalink)  
Old 05-03-2016, 02:26 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by ch0wd0wn View Post
not not as self employed. I am a "work from home" employee working for a company. i can work from anywhere....i decide to live overseas and "work from home" there. i am still with the same employer. sorry if i didnt make that clear... i will still get paid by my employer from the u.s.

that being said, would I qualify?
no problem aslongas you meert the requirements as mentioned previously. yes you can claim the feec on your w2 income overseas even if you are a "work from home" employee working for a company and decide to live overseas and "work from home" there.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #5 (permalink)  
Old 05-03-2016, 03:56 AM
Junior Member
 
Join Date: May 2016
Posts: 4
strange, i got email notification that you replied but when i get here, i dont see it...nor do i see this message im typing...



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #6 (permalink)  
Old 05-03-2016, 01:52 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by ch0wd0wn View Post
strange, i got email notification that you replied but when i get here, i dont see it...nor do i see this message im typing...
i know there is some tech problem .



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #7 (permalink)  
Old 05-04-2016, 02:20 AM
Junior Member
 
Join Date: May 2016
Posts: 4
thank you so much for clarification and info on feec!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Dual status first year choice- foreign income exclusion? capri Filing Requirements 0 04-04-2013 05:57 PM
Five Facts about the Foreign Earned Income Exclusion Samatg Income 9 01-25-2013 02:20 AM
Foreign earned income exclusion and mortgage interest/principle expenses goriding Itemized Deductions 1 10-07-2012 08:26 PM
Can a nonresident alien take the foreign earned income exclusion if that person meets the bona fide resident test or physical presence test? TaxGuru Income 0 02-27-2011 10:33 PM
How does one qualify for Foreign Earned Income Exclusion & Foreign Housing Exclusion? TaxGuru Miscellaneous 0 05-06-2008 04:42 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.