(a) which country ?
(b) when did you enter that country and are you still there ? If not when did you leave that country?
(c) Were you employed by a local entity / a subsidiary of an US entity or what ?
You need to report Gross foreign income ( did you get a statement of earnings from your employer ?). Any income taxes on any unexcluded income ( FEIE remnant ) is eligible for foreign tax credit.
Please answer my questions -- there may be US-That Country tax treaty implications.
I will circle back once I hear from you
Thanks. I live in Sweden now, I still live here. I received my first pay in August of 2024. I have payslips from each month. I'm employed by a swedish company. They have a US office, but I am employed by the swedish entity (the company started in Sweden).
(a) Your foreign source income ( for US purposes ) is the gross amount ( equivalent to what would appear on Box 1 a W-2 ) -- this is before any tax/ withholdings . I am assuming here that your employer provides you with your gross pay and also the taxes withheld on that income.
(b) Note that for you to be able to exclude your Foreign Earned Income ( FEIE ), you would need a full 12 month test period of residence in Sweden -- for Physical Presence you need to be out of US for 330 days in any 12 month test period. -- form 2555.
So tell me when did you arrive in Sweden ? What I am looking for is the first full day -- that is when you have established a foreign tax home.. Thus for example your first full day was July 2nd ( having arrived on the morning of July1st. ) 2024, then your earliest test period is 07/02/2024 to 07/01/2025. So you would file your return after having met the Physical Presence Test and be able to exclude all foreign earnings for 2024 post establishment of the tax home.
Is there more I can do for you ?
I arrived in Sweden on July 28th. However, I lived in Chile from January 4th, 2024 to July 3rd, 2024. I think I can sum 330 days living outside the US with this. I did not work while I was living in Chile. I did not work in 2024 at all until I started my job in Sweden.
@tracywormwood , yes you are correct ---- your test period can be Jan5th 2024 ( the first full day in a country -- Tax home Chile and then Sweden ) through Jan 5th 2025. .
So is there more I can do for you ?