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Level 2
posted Oct 10, 2023 7:49:13 AM

Does the Foreign Earned Income Exclusion apply if I live in the US but am paid by a foreign company?

Hi all,

 

Does the Foreign Earned Income Exclusion apply if I live full time in the US but am paid by a foreign company? Let me explain further...

 

I am a dual citizen (American and Australian). I do part time work for an Austrailian company. I have not lived in Australia for years nor do I plan to while conducting this remote work. 

 

The company has offered to pay me on payroll into my Australian bank account or asked for me to invoice them if I want to be paid into my US account. Does the Foreign Earned Income Exclusion apply at all? I am debating which would be the better option to be paid and tax implications. 

 

Thanks in advanced. 

0 2 1021
2 Replies
Level 15
Oct 10, 2023 8:18:18 AM

Who is eligible for foreign earned income exclusion?
 
 
A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

Level 15
Oct 10, 2023 8:37:16 AM

No, the foreign earned income exclusion does not apply to the situation you described. Foreign earned income is income you earn for working in a foreign country. If you do the work in the United States, the income is not foreign earned income, and is not eligible for the exclusion. It doesn't matter where the account is located that the income is deposited in.