I have been living outside US since Nov 2019. Had been on W2 then switched to self employment. Am taking the Foreign Earned income exclusion only this year though !
My Tax home is a foreign country. But I travel to the US every year anywhere between 30-60 days, to meet with the clients and work on their specific issues. Such trips don't generate a separate business income. Technically I would still receive the pay even if I did not visit the US.
1. Does my pay during such US trips count towards "Income Earned in U.S. on Business" - a question on "Trips abroad" page of FEI.
a) If yes, should I prorate my pay for the travel period ? If no, then its a zero and I report my entire earnings as FEI
b) If yes, does this income qualify for QBI then ?
2. What will my "Foreign Gross profit" be ? Is it the entire overseas income (1099 - NEC earnings) or should I exclude the business expenses ?
My travel in 2022 has been 41 days and Turbotax still allows me to take the FEIE, but not in its entirety. Yet to figure that out too ! Any guidance on that is appreciated too.
