Hellow. I live in South Africa for > 330 days in 2016. I earned W2 income from my USA employer, and USA rental. Is this income exempt from tax as per form 2555?

[tigrano007]

Hellow.  I live in South Africa. I earned W2 income from my USA employer, while working in numerous countries and on vessels in territorial waters of said various countries, for approx. 180 days per year. The balance of the year I was on South African soil.
I have a rental property in USA. I was out of USA for more than 330days. Is ALL my foreign earned income EXCEMPT from tax? ie W2 income and rental income? or only the income earned in South Africa?
Does W2 earned /rental income paid into USA bank accounts qualify as “Foreign earned income”, based on qualifying for the 330 days abroad ruling (off USA soil)

[TaxGuyBill]

Yes, it sounds like all of your Foreign EARNED Income is exempt from tax (up to the maximum limit), if you were not actually in the US for that work.  It does not matter if it was a US employer or deposited into a US bank account.

However, rental income is not "earned" income, so that will be taxable.

[tigrano007]

Thank You. So do I just need to amend my return and include a 2555/Foreign Income earned worksheet? Would this US tax Exemption then expose me to the having to then declare the US earned income in the tax returns of the country of residence? This could mean having to pay tax at a much higher rate.....

[TaxGuyBill]

Yes, if you have already filed your tax return, you would amend your it and include Form 2555 to claim the Foreign Earned Income Exclusion.
<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1894381-how-to-amend-change-or-correct-a-return-you-already-filed"...>

I have no idea how it would affect the tax return in the foreign country.  I would THINK your reporting duty would not be dependent on your US tax return, which means you may need to file a tax return in that country regardless if you claim the Foreign Earned Income Exclusion on your US tax return or not.  However, you would need to contact the tax agency or a tax professional in the country of residence, because each country's tax laws are different.

[view2 · Accepted solution]

{Edited} Sorry! Misssed typed a comment

[user930721518908]

Hello,my name is Erik. Im a South African that worked and earned income in Canada in 2016. I would just like to ask if i can still claim any tax back,and if so,how?

[mesquitebean]

Are you asking about a Canada tax return or a USA tax return?
This is the USA TurboTax forum--not Canada TurboTax.

Here is the Canada TurboTax community forum:
<a rel="nofollow" target="_blank" href="https://turbotax.community.intuit.ca/tax-help">https://turbotax.community.intuit.ca/tax-help</a>

[user930721518908]

Thank you