@gsta , to clear my understanding-->
1. you are a citizen of xx country; you are Resident of USA and have been in the USA for considerable time;
2. You have US source income reported on W-2;
3. You have self-employed income from customers/clients in one or more countries in Europe;
4. You have Bank account in Europe ( country XX ) and your clients deposit the payments into this account ( foreign bank )
From US perspective,
(a) since the work in actually done in the USA ( please confirm that you actually live and work in the USA and generally do the work for the foreign client on-line with perhaps occasional visits thereto ). it is US sourced income and not foreign income for tax purposes.
(b) if the foreign jurisdiction taxed this income as in-country sourced earnings of a non-resident, then there are mechanisms to change the sourcing of the income -- but absent other facts this does not seem necessary.
(c) However, because you are holding the monies in a foreign account, you may come under the reporting requirements of FBAR and FATCA.
(d) As far as reporting / recognizing the foreign income, all you do is declare these incomes as self-employment income ( Schedule-C ) and allowable expenses associated with this income stream, pay self-employment tax ( Schedule-SE ) and that is all. TurboTax ( Self-emloyment or Home & Business ) will do all the necessary work for you on this.
Is there more I can do for you ?
