Hello,

I waited to the last minute to finish my taxes and need some help.

I am a US citizen that worked abroad all of 2010 and received a 1099-Misc for $50,000 from a US company that I perform consulting work for. Also, I did not pay any tax to the foreign country I resided in during this period.

Can this $50,000 in income be excluded from US income tax? If so, does this income still need to be reported under Sch C? If not, where? Since it is well below the $91,500 allowed by the IRS, is there any reason to claim legitimate business expenses such as hotel, airfare, meals and communication expense to reduce my AGI?

If I cannot exclude this income from my US tax liability, I would assume the legitimate business expenses spent overseas I mentioned above are acceptable to claim as a sole-proprietor to help reduce my taxable income including?

I just read the following thread and now wonder if my "tax home" would be considered this foreign country.

Foreign Tax Exemption for 330 days overseas for 12 consecutive months

I was not formally a resident of this country, but I did have a drivers license and long term business Visa in this foreign country and lived in a hotel from December 2009 through February 2011 and then an apartment through May 2011 before returning to the US permanently. During this period, I did return to the US for 10 days each during Christmas 2009 and 2010. I had a primary residence in the US, which I sold in April 2010 while overseas. Do you think I meet the requirements by the IRS to consider the foreign country my "tax home" in 2010?

Thanks in advance
JC