So i am contracting for a company and living abroad. I can either have the funds placed in my foreign bank account in the local currency or into my US bank account in $. I am outside the US for more than 330 days/year and qualify for the foreign income exclusion clause. This outside corporation is obviously not giving me a 1099 (as it is not a US company and i am not in the US) but if they bank transfer me my funds to my US account will those funds still be considered foreign earned? As in ... will i not be taxed in the United States on that income (assuming it is under the exclusion limit).
You'll need to sign in or create an account to connect with an expert.
The funds will still be considered foreign. What matters is, where you are located while doing the work and that the company is not the US government or one of its organizations or contractors.
If the income is under the exclusion limit, it will not be taxed (meaning income taxes). However, you would owe self employment taxes, unless you pay into the social security system of the foreign country and the US and that country have a totalization agreement. In that case you would need a certificate of coverage from that country for social security.
The funds will still be considered foreign. What matters is, where you are located while doing the work and that the company is not the US government or one of its organizations or contractors.
If the income is under the exclusion limit, it will not be taxed (meaning income taxes). However, you would owe self employment taxes, unless you pay into the social security system of the foreign country and the US and that country have a totalization agreement. In that case you would need a certificate of coverage from that country for social security.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
fanfare
Level 15
bernalshah
New Member
obeteta
New Member
RShaunSmith
New Member
king2434
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.