FEIE- Foriegn Earned Income Exclusion (USA)

[Mira Vos!]

Hey all,

* Understand I can/will go to a tax specialist with specific questions on this *

Since some I’m guessing are from the US and working remote in Argentina- I believe under the FEIE if you make under a certain amount of USD (it’s $107,000 or so) you don’t have to pay taxes if you are in the US for only a month or so out the entire year.

So my question is if I spend six months in Argentina and six in Colombia all while working for a US company remote would I end up not paying taxes? I believe that is correct but wanted to be sure, I’m pretty sure I need to filed regardless. Thanks.

MV

 

[lunar]

So my question is if I spend six months in Argentina and six in Colombia all while working for a US company remote would I end up not paying taxes? I believe that is correct but wanted to be sure, I’m pretty sure I need to filed regardless. Thanks.

Get IRS Form 2555 and instructions to this form from the IRS website and try to fill it.
Basically, if you spend > 330 days outside of the USA you are likely to be eligible for the foreign earned income exemption applied to your federal taxes.
(You still have to pay Self-employment taxes).

 

[Mira Vos!]

Get IRS Form 2555 and instructions to this form from the IRS website and try to fill it.
Basically, if you spend > 330 days outside of the USA you are likely to be eligible for the foreign earned income exemption applied to your federal taxes.
(You still have to pay Self-employment taxes).

Thank you. Would be working for a US company remotely so not self-employed. No state taxes either (Florida)

 

[jblaze5779]

You can only claim a credit for the taxes which you have paid to the foreign country.

If you work in Argentina but you don't pay any taxes (illegal), then you cannot claim a credit on your US taxes.

If you work in Argentina and pay their crazy income taxes then yes you can claim this credit up to the annual limit. Anything over the limit you can carry as a credit to the next year.

It's not like if you work outside the US you don't pay taxes. In your case, since you're working remotely in a foreign country (technically illegal) for a US company you would continue to just pay your regular payroll taxes as if you were in the states.

The US gets its taxes no matter where you work or live or exist (sucks)...

 

[Mira Vos!]

You can only claim a credit for the taxes which you have paid to the foreign country.

If you work in Argentina but you don't pay any taxes (illegal), then you cannot claim a credit on your US taxes.

If you work in Argentina and pay their crazy income taxes then yes you can claim this credit up to the annual limit. Anything over the limit you can carry as a credit to the next year.

It's not like if you work outside the US you don't pay taxes. In your case, since you're working remotely in a foreign country (technically illegal) for a US company you would continue to just pay your regular payroll taxes as if you were in the states.

The US gets its taxes no matter where you work or live or exist (sucks)...

Interesting....I thought if I was out the country for 330+ days of the year AND wasn’t staying a long period of time in a country it wouldn’t matter (For example, if I did less than 3 months in four countries over the span of the year but none of those are the US)

 

[Mira Vos!]

“Thankfully, the U.S. government has put measures in place to limit the amount of U.S. tax payable to its citizens working abroad, particularly if they’re paying taxes elsewhere, OR if they’re earning less than $100,000 a year. As such, the majority of Americans working remotely abroad won’t have to pay any U.S. taxes; however, they’re still required to file a return and claim the exceptions that best exempt them from paying U.S. taxes depending on their individual situation.”

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Sounds like you just need use the physical presence test to prove you have been out the US over 330 days

 

[lunar]

You can only claim a credit for the taxes which you have paid to the foreign country.

He is not claiming a credit, he is claiming an exclusion. I believe these are different stories and different IRS forms.

 

[MyArgentina]

Here's a comprehensive resource that offers advice re the FEIE. https://brighttax.com/blog/category/foreign-earned-income-exclusion/

(Bear in mind, please, I am NOT selling anything. Only wish to help.)

 

[BANY]

Here's a comprehensive resource that offers advice re the FEIE. https://brighttax.com/blog/category/foreign-earned-income-exclusion/

(Bear in mind, please, I am NOT selling anything. Only wish to help.)

Hey MyArgentina, if you work for BrightTax and are in Argentina I would love to talk to you. Im looking for expat tax services and prefer someone locally here. Please let me know if you or anyone else here in the forum provide Expat tax services, thanks.