@Anonymous_ , @astral101 , I think I have answered this question earlier. This is a case where the taxpayer's tax home is USA and earns "wages" from Canadian entity as a remote worker. This puts the taxpayer in messy situation because the "tax-home" being US, and therefore taxpayer is not eligible for FEIE. Taxpayer must report the gross income on Schedule-C and the net income ( this is the income that is being taxed by both Canada and USA ) is then eligible for foreign tax credit/ deduction.
Additionally tax payer is subject to SECA taxes, absent a SSA approved "certificate of participation" from Canadian employer/SSA Equivalent.
Or is this a different issue and I am missing the point ?
pk
