Self Employment Income and living overseas

Forum|Forum|3 years ago
October 10, 2022
3 replies
33 views

I live overseas and have self employment income from customers based in the US and get paid in the US.

My LLC is based in the US with a branch office overseas. All the work is done overseas for US customers.

Should I input my self employment income under Schedule C or under form 2555?

Thanks

Anonymous_

Level 15

@pk12_2 ?

pk_

Level 15

@Raj1 , if your LLC ( under US State Laws ) is a single member LLC, then for US taxes it is a dis-regarded entity i.e. you file a Schedule-C showing all your income , all allowable expenses, pay US taxes on the net income and Self-Employment taxes ( a 15.3% on most of the net income ). All of this TurboTax will do for you.

Next if I am to assume that you a US person ( citizen/ Green Card ) and not residing in USA ( i.,e. the work was all done abroad ( India ? ), then this income stream would be characterized as foreign {self-employment/ earned} income and as such may be eligible for exclusion from US taxes up to a max ( set each year ). So to look into this more :

(a) are you US person?

(b) which state is your llc based on -- do you a physical address etc.

(d) which country are you in? When did you arrive there ? and are you still there ? --- we need a continuous 12 month window/ test period of which at least part falls in the tax year and that you have been away from the USA for 330 days ( within this 12 month period ) ? Give me the period , if you would please

(e) anything else that may affect this discussion

please .

I will circle back once I hear from you.

Namaste ji