I am going to the mission field next year and I need help regarding and preparing for taxes?

[axoiamthatiam]

We will be aiming at getting the foreign exemption as we will live at least 330 days out of the country. Does that still apply if we are receiving our funding into our bank account in the U.S. and then transferring it to us in our foreign country? We won’t exceed the income limit. So all I should have to pay if I understand it, is social security tax? Am I correct or am I missing something? And if I am wrong is there a way as a missionary to avoid federal tax? Please help and thank u

[DaveF1006]

It depends on how you are paid and who you are being paid by. If you are paid by a US source, then this is not foreign income even though you are on foreign soil. TO claim the exemption, you would need to be paid from a foreign source. Please refer to this IRS link for more details.