“All my income was from foreign sources. Do I list income as business income or as foreign income. “---->I guess you list the income as business income on your Sch C/ Sch SE for SECA Tax purposes and foreign income on your US returns, federal/ state return. You, as a US person, an IC , a self employer, needs to file SECA tax with the IRS as long as the amount on Sch SE line 4 is $400 or exceeds $400 and pay SECA taxes and also need to pay quarterly estimated taxes to the IRS/ your state as long as you are filing as a sole proprietor and/or a self-employed individual, you generally have to make estimated tax payments if you expect to owe tax of $1,000 or more when you file your return.If you are filing as a C-/S- corp you generally have to make estimated tax payments for your corporation if you expect it to owe tax of $500 or more when you file its return.For 2011, you may elect to exclude up to $92,900 of earned income from foreign countries. To qualify for the exclusion, you must either reside in a foreign country for th entire year or be physically present in a foreign country for 330 full days during the 12-month period. When you require for the exclusion, but reside in a f.counrty only part of the year, the exclusion must be prorated. For example, if you reside in a f.country for the last 210 days of 2011 and the first 300 days in 2012, then, the max excl must be prorated in both years; 2011;$92,900*2110/365=$53,449 on your 2011 US return ; 2012; $92,900*300/365=$76,356 on your 2012 US return. Self-employed taxpayers have additional tax considerations. The foreign earned income exclusion will reduce your regular tax liability, but not your self employment tax.
Please visit he IRS Website here:
Foreign Earned Income Exclusion - Can I Claim the Exclusion or Deduction?
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