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Old 05-02-2016, 01:33 PM
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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 =)



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Old 05-02-2016, 04:13 PM
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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



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Old 05-03-2016, 02:21 AM
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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?



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Old 05-03-2016, 02:26 AM
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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.



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Old 05-03-2016, 03:56 AM
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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...



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Old 05-03-2016, 01:52 PM
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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 .



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Old 05-04-2016, 02:20 AM
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thank you so much for clarification and info on feec!



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