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Tue, 30 Jan 2024 17:02:47 -0800

moisture2 from private IP /all Haven't paid income tax in over 2 years thanks to FEIE I live abroad and work remotely for a US employer, so I take advantage of this IRS exclusion. H&R block signs off on my return and I have yet to be audited. People keep busting my balls about it but it's 100 % how the rule works and was meant to prevent doublen taxation. https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion _reply Tue, 30 Jan 2024 18:13:58 -0800
Andy from private IP /all Thanks for playing, but no-- the IRS web page is ambiguous, but the statute is not. Under 26 U.S.C. sec. 911(b)(1)(A), foreign-earned income is income earned "from sources *within* a foreign country." Working as a digital nomad for a U.S. employer is clearly taxable as worldwide income of a U.S. citizen who is merely residing abroad. _reply Tue, 30 Jan 2024 18:19:41 -0800
moisture2 from private IP /all Totally false. WHERE the income comes from is irrelevant as long as you meet the physical presence test. "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." Like I said, I haven't paid income tax in 2 years after claiming the FEIE despite ALL my income coming from the US. _reply Tue, 30 Jan 2024 18:23:10 -0800
moisture2 from private IP /all " foreign earned income is income you receive for services you perform in a foreign country" I performed the services in a foreign country because that's where I was living. The source of that income is totally irrelevant. _reply Tue, 30 Jan 2024 18:25:24 -0800
Andy from private IP /all I should add a vote option for everyone else to weigh in. Are you sure you want to post your view of this permanently online with not even an edit feature implemented yet? Wow, that takes some balls. _reply Tue, 30 Jan 2024 18:42:19 -0800
moisture2 from private IP /all "FOR THIS PURPOSE, foreign earned income is income you receive for services you perform in a foreign country in a period during which your tax home is in a foreign country and you meet either the bona fide residence test or the physical presence test." _reply Tue, 30 Jan 2024 18:44:09 -0800
Andy from private IP /all You're relying on the IRS web page and not the actual statute. The actual statute is directly against this interpretation. See here: https://www.law.cornell.edu/uscode/text/26/911 _reply Tue, 30 Jan 2024 18:51:16 -0800
moisture2 from private IP /all Read this article by a CPA and professional tax preparer. https://brighttax.com/blog/irs-foreign-earned-income-exclusion-us-expats-guide/ _reply Tue, 30 Jan 2024 18:56:30 -0800
Andy from private IP /all It says right in the intro "Americans with *foreign-sourced income* can exclude a substantial amount of their earnings from US taxation." He didn't discuss the statute at all. _reply Wed, 31 Jan 2024 06:20:42 -0800
moisture2 from private IP /all Sorry, wrong article. Read this: "Foreign vs. US Earned Income Generally, the IRS classifies income by where it is earned. If you are living and working abroad, then your income is considered to be foreign earned income, EVEN IF YOU ARE BEING PAID BY A US COMPANY." https://www.greenbacktaxservices.com/knowledge-center/tips-updates-foreign-earned-income-exclusion/#:~:text=Generally%2C%20the%20IRS%20classifies%20income,paid%20by%20a%20US%20company. _reply Wed, 31 Jan 2024 07:05:50 -0800
Wily from private IP /all Moisture2 is correct here - a few expats I know are paid by a US employer to a US bank account but get the foreign earned income exclusion. Even if he's performing US-based online services for a US business, he's technically in a foreign country while he's doing it, so it still applies for now. _reply Wed, 31 Jan 2024 08:07:14 -0800
moisture2 from private IP /all Wily do they then file a return with the Chinese irs then? _reply Thu, 01 Feb 2024 04:53:34 -0800
zerosugar from private IP /all good for you. continue living that er expat life. _reply Thu, 01 Feb 2024 06:53:09 -0800
Wily from private IP /all They do have to do a local Chinese tax reporting for Chinese based income, and they need to have some to stay in the country on a work visa, but actually all foreign income is tax free until you live here for 5+ years without leaving for 3 months or something like that. So basically it's a pretty nice deal for their first 100k of USD income. But over that they're definitely paying marginal tax on since there's no way to hide US payments from the IRS. And these bros def make more than 120k or whatever, like they're the old school full expat packages with housing / kids' international school. _reply Thu, 01 Feb 2024 06:57:15 -0800
Wily from private IP /all There's a lot that's interesting about Chinese tax law, but it's basically always post tax income. The government doesn't trust you to report anything you owe so they just withhold the taxes directly from income. Same with VAT taxes on sales of products or services. So the tax report is basically only to claim refunds, not to make yourself pay more tax, and you really don't even learn your effective taxes you paid unless you dig deep or you're the employer. Pretty sure the US system of self reporting, knowing exactly how much taxes you've paid, and then paying more is intentionally to make people poltically more anti-tax. _reply Sat, 10 Feb 2024 00:09:26 -0800
shithead from private IP /all FEIE for 2023 is $120,000. You poor. _reply Sat, 10 Feb 2024 06:42:29 -0800
moisture2 from private IP /all @shitheadTest TCPA settlement income doesn't qualify _reply Sat, 10 Feb 2024 07:19:02 -0800
shithead from private IP /all You've been working in financial services for how many years, and you're still not breaking a buck-twenty? Sux. _reply Sat, 10 Feb 2024 07:23:12 -0800
moisture2 from private IP /all I have 2 contract jobs where I do No Work which leaves time for travel and other stuff. I could make more but choose not to. _reply Sat, 10 Feb 2024 10:56:54 -0800
shithead from private IP /all yeah sure okay
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