Discussion:Foreign source income

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Discussion Forum Index --> Advanced Tax Questions --> Foreign source income

Discussion Forum Index --> Tax Questions --> Foreign source income

Taxinca (talk|edits) said:

1 February 2010
Taxpayer is a US citizen who lived the entire year in Singapore and had no presence in the US. He was an independent contractor for a US company where he "telecommuted". Does this qualify as foreign source income for the Foreign Earned Income Exclusion? The income isn't FOR working in a foreign country...it's WHILE working in a foreign country.

I don't know if taxes were paid in Singapore.


DaveFogel (talk|edits) said:

1 February 2010
The source of the income is where the services were performed. See "Source of Earned Income" in Publication 54. If the taxpayer performed all of his services in Singapore to earn the income, then the income is foreign source, regardless of whether it was paid by a U.S. company.

Taxinca (talk|edits) said:

2 February 2010
Thanks Dave...I appreciate the help

KatieJ (talk|edits) said:

2 February 2010
Bear in mind that California does not conform to the IRC Sec. 911 exclusion. If the taxpayer remained a California resident during his absence, all of his foreign earnings are subject to California tax.

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