Questions tagged [foreign-income]

To be used for questions related to income received from outside the country in which you reside or claim as a primary residence for tax purposes

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Switzerland taxation over income derived from foreign businesses

I'm considering moving to Switzerland permanently (I'm Italian, currently living in Italy), but I would like to know if my income derived from an US LLC (foreign-owned single-member LLC) is exempt ...
Paulo Coghi's user avatar
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31 views

[India-US]Taxability of qualified dividends on US mutual funds by Income Tax department of India

AFAIK, dividends paid out by mutual funds are of two categories, ordinary and qualified. The ordinary dividends are taxed as ordinary income while the qualified dividends receive the favourable LTCG (...
user2171768's user avatar
2 votes
1 answer
815 views

Taxes for selling property in foreign country

I've been owning half of the house in Russia before I immigrated to the US and I recently inherited the 2nd part of it. Now I'm thinking to sell it. Should I pay any taxes in the US if I sell it? I'm ...
Rainmaker's user avatar
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1 answer
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New US tax resident 2022 - from Canada. RRSP/bank-accounts/income questions

I moved from Canada to USA on May 30 2022 and work here as a full-time W2 employee. That makes me a US tax resident (alien) for 2022. Here's my detailed situation: I earned a salary until May 26 2022 ...
urover's user avatar
  • 111
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1 answer
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As an overseas company owner, what are my tax obligations to the UK?

I'm a dual resident of the UK and Country X for tax purposes. I'm not employed in the UK or Country X. However, I have a single company registered in Country X, which has regular income. The income ...
user122795's user avatar
0 votes
2 answers
664 views

Where to report foreign earned income on 2022 1040 form

In 2021 and earlier (PDF), line 1 of the 1040 form said "Wages, salaries, tips, etc. Attach Form(s) W-2". So I would include foreign earned income in that line (and then deduct it further ...
Stephen Powell's user avatar
0 votes
1 answer
117 views

H4 visa spouse Taxes : Joint or Separate

I'm working on H1B visa since Oct 2019 in the US and married in 2022. My spouse (on H4 visa) is working in Canada and has income in Canada. She doesn't have any income in the US and has no W2 and SSN/...
usertaxes09's user avatar
0 votes
1 answer
85 views

Taxes: What is the correct way to file freelance income?

I've been living and working remotely as a freelance software developer in America, but for European clients. Each month I write them an invoice for my contract hours and they pay me (in EUR, if that ...
Donuts's user avatar
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2 votes
1 answer
102 views

the correct place to report foreign income

Doing taxes by both Turbotax (TT) and TaxAct (TA), I get different answers to my relatively simple situation. Here is the summary of their respective calculations: line# Entry Turbotax TaxAct 1 ...
punkish's user avatar
  • 247
17 votes
1 answer
3k views

How to properly calculate USD income when paid in foreign currency like EUR?

Say I live and work in the United States, but mostly do contract work for European organizations. This would mean that I very often invoice and get paid in EUR, which initially might go into a EUR ...
Donuts's user avatar
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1 vote
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How to report dividend reported on French form 2777

I live in the US, but the parent company of my employer is headquartered in France. It's a privately held corporation, and I received some stock as a bonus a few years ago. Last year they underwent ...
Barmar's user avatar
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Where can I find the form, schedule and line where the interest/dividends/royalties etc from foreign accounts are reported, when those values are 0?

I am a US resident. I have a non-US bank accounts. Therefore, I fill form 8938 on Turbotax. In form 8938, I need to indicate the "schedule and line" and the "form and line" where ...
Franck Dernoncourt's user avatar
2 votes
1 answer
39 views

Foreign tax credit carryover is less than foreign tax refund

I have foreign tax credit carryover for $14,000 in 2022 US tax return. In 2023 I will be getting a foreign tax refund of $21,000. What happens when I file 2023 tax return? Will I have $7000 tax due?
user65985's user avatar
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2 votes
1 answer
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Change of Residence 1040-X

I work for an American company but live and pay taxes abroad. I filed my 2021 taxes (w-2 employee) without taking advantage of the foreign income deduction (ex. I put a US mailing address as my ...
Noel's user avatar
  • 135
2 votes
1 answer
151 views

Independent contractor taxes with J1 visa

I have a J-1 visa as Research Scholar to pursue full-time research at an American university. The visa is sponsored by the university and expires on June 2023. I am planning to move back to Europe ...
apt45's user avatar
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1 answer
687 views

How are RSUs granted in Canada but vested in the USA taxed?

I moved to the USA with a Green Card a couple months ago. My employer awarded me with RSUs a couple years ago, and some have vested after I moved to the USA. I am filing as Dual-Status Alien, so ...
Matth S.'s user avatar
1 vote
0 answers
69 views

Correctly file income from NSOs as non-resident citizen

I'm a dual citizen (Belgium - USA) and have lived / worked in Belgium always. Because I pay taxes in Belgium, I've been using the Foreign Earned Income Exclusion (FEIE) to offset my wages and paying $...
Rubberducky's user avatar
1 vote
1 answer
108 views

How much net passive source income goes on Form 1116 when capital losses are way over the $3,000 limitation?

For U.S. tax year 2021, I have a large passive-category foreign source capital loss (mostly long-term), a medium-size domestic capital loss (mostly long-term), and a small passive category foreign ...
Tim Lovell-Smith's user avatar
0 votes
1 answer
96 views

Can submitting a form 12203 Request for Appeals help me in my situation when I am a month past last date to respond?

(I have another question related to my situation but since it was getting too long, I am breaking down my questions so it will be manageable.) The IRS recently reclassified my reported income of tax ...
Mr Monee's user avatar
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2 votes
1 answer
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Specific Foreign Earned Income IRS form 2555 question

I live in a western European country and qualify under the IRS Form 2555 Bona Fide Residence Test. While living overseas, I continued to work for a US small company. My work had nothing to do with ...
fanoPaul's user avatar
5 votes
1 answer
103 views

AMS points as taxable income when living and paying taxes in EU

I have been invited by Mathematical Reviews to perform reviews of articles. As compensation, I received some AMS points, which are redeemable as credit toward future purchases of books, etc, from the ...
Konrad Burnik's user avatar
4 votes
1 answer
657 views

sold property in the Philippines and asked money to be sent here in US

Parents sold their property in the Philippines and asked their money to be sent to their bank account here.They have their green card. Will they have to pay taxes on that?
maria's user avatar
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1 answer
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Clarification regarding CA source income for non-resident

I am filing taxes for 2020 as CA non-resident because I have provided a CA address on my US trading account. I have foreign earned income, foreign interest, dividends from the trading account, and US ...
user2371765's user avatar
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2 votes
1 answer
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Is Foreign Income taxable In India

I was abroad from 2 years(so NRI currently), Now returned to India in April and working for Portuguese company individually and they need me to send invoices monthly for the payment. Now this company ...
Amol's user avatar
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1 vote
1 answer
63 views

How do you report a foreign bank or brokerage account UK

How do you report foreign bank or brokerage accounts as a UK tax resident? Is it enough to just fill out the foreign income, interest and capital gains section of the tax return? Or do I have to ...
UEFI's user avatar
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0 votes
1 answer
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Can I use the standard single deduction amount on form 1040 line 9 (12,200) if I am filing a 2555?

I need to amend my 2019 taxes as I filled out the deductions incorrectly (need to submit 1040x). I have filed 1040s and 2555s for the past 5 years with a tax home in Germany. Can I use the standard ...
egurich's user avatar
3 votes
1 answer
89 views

As a U.S. citizen, how does income tax work for income from non U.S. companies?

I've done freelance work online previously mainly for U.S. companies, and the tax forms were either 1099-MISC or 1099-NEC. 2020 was my first time doing freelance work online for foreign companies. ...
user3667089's user avatar
1 vote
1 answer
71 views

Bermuda missing from S&P's list of Withholding Tax Rates - what's the rate?

S&P Dow Jones publishes a list of Witholding Tax Rates by country here. For some reason, Bermuda is not on this list. What is the rate for Bermuda?
Alex R's user avatar
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1 answer
502 views

Where to report foreign income on 1040 Individual income tax return form

The 1040 Individual Income tax return form asks in field 1 to report wages/salaries/tips/etc and to attach forms W-2. If one received both income in the US, and some income abroad, and is tax liable ...
Joris Kinable's user avatar
0 votes
1 answer
69 views

Am I required to use form 2555 even if I earn less than the standard deduction?

I am trying to file my U.S. taxes as an expat in Sweden to try to claim the stimulus check money. I received around $5000 in student grants (which do not need to be repaid) and $5,000 in loans. I am ...
James's user avatar
  • 3
1 vote
1 answer
122 views

Filling out form 2555 (Foreign Earned Income exclusion)

Browsing these forums for questions regarding Form 2555, for issues not mentioned in instructions it seems that there is no official answer. For example, during this year I got sick with the ...
Alex's user avatar
  • 150
2 votes
2 answers
183 views

Does the (non-resident alien) owner of an LLC (as a disregarded entity) pay income taxes on (non-US) profits?

Let's assume the owner is the sole owner of the LLC. Let's also assume the owner is tax resident in a country with no double tax treaty with the U.S. Let's also assume the profits are not income ...
Shazamo Morebucks's user avatar
1 vote
2 answers
40 views

Is the FEIE tax reduction, based on Physical Presence Test, prorated based on how many days you were outside of the country in the year?

Let's suppose that I am out of the USA from January 1st 2020 to December 31st 2020 for 335 days of the year. So I do qualify, but instead of the full ~100k reduction, would I only get (335/365) * 100k ...
Bear Bile Farming is Torture's user avatar
2 votes
0 answers
440 views

Foreign earned income exclusion for PhD student income

I am a US citizen. I live abroad and am enrolled in a PhD program at a foreign university, for which I receive ~20kUSD/year. I will refer to the money received from the university non-specifically as ...
Bananach's user avatar
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1 vote
0 answers
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Has Sharesight calculated my dividend's foreign source income correctly?

I recently received my first dividend from the ASX:IVV S&P 500 ETF. In the Components of Distributions announcement it says that the Foreign Sourced Income is 99.9998% of the cash distribution. I ...
curiousdannii's user avatar
4 votes
0 answers
57 views

When is the latest that I can move out of the US to qualify for FEIE based on physical presence test

As I understand it, to qualify for the physical presence test, the last date that you can use is the date you file your tax return. So suppose that I will file my tax returns on April 1st 2022. Does ...
Bear Bile Farming is Torture's user avatar
6 votes
1 answer
150 views

Tax exclusion for American Expats

I am an American Citizen. I work remotely for a company based in the US. Working remotely means that I can live wherever I want. If I move to a foreign country and live full-time there and ...
Bear Bile Farming is Torture's user avatar
2 votes
1 answer
52 views

General FEIE question

I work for a public (state) US university but I live abroad. The university has not sent me abroad and the work does not require me to work abroad, it is purely my choice (and a deal I worked with my ...
Foreign researcher's user avatar
4 votes
1 answer
103 views

Social Security and other liabilities for foreign employers of US citizens working remotely

I have the following situation: I am a US citizen employed (or about to be employed, depending whom you ask) outside the US in a country that is currently under lockdown. I've asked permission to work ...
jdc's user avatar
  • 141
2 votes
1 answer
78 views

UK tax on foreign capital gains

Are capital gains on foreign stocks taxed in the UK for a UK tax resident? If yes, what are the specific rules and rates at which they are taxed?
user2371765's user avatar
  • 1,074
1 vote
1 answer
53 views

Deductibility of short-term foreign capital losses in India

Since short-term capital gains on foreign stocks are taxed at the regular income (slab) rates in India, is one allowed in India to deduct short-term losses on foreign (relative to India) stocks from ...
user2371765's user avatar
  • 1,074
4 votes
1 answer
65 views

Would a UK resident who pays tax to a foreign country on dividends (of less than <£2,000) need to file Self Assessment for this reason?

Suppose an American expat taxpayer living in the United Kingdom earns dividends on U.S. stocks that fall below the UK's tax-free dividend allowance of £2,000, and this is the only income they have ...
Gabriel's user avatar
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1 vote
0 answers
29 views

W2 details for foreign earned income tax exemption

I'm planning on being out of the US for a 12-month period, and plan to take the foreign earned income exemption. The problem is that my employer uses a payroll service which can only issue a W2 ...
will_durant's user avatar
4 votes
0 answers
107 views

Working remotely for a Japanese company as a non-resident outside Japan

As the title suggests, I am currently performing remote work as an intern for a Japanese company. I am non-Japanese nationality residing outside of Japan. Am I subject to the flat non-resident tax of ...
iamlorkkurdleak's user avatar
0 votes
0 answers
42 views

When can I claim the Foreign Earned Income Tax Exclusion / ask employer to stop withholding?

I've decided to stay abroad for a year (abroad starting August 1, 2020) and am considering taking the foreign earned income exclusion. If I decide to go that route, when should I have my employer stop ...
will_durant's user avatar
1 vote
0 answers
27 views

Capital gains tax in New Zealand on foreign shares

What is the capital gains tax in New Zealand on foreign shares?
user2371765's user avatar
  • 1,074
3 votes
0 answers
30 views

Can a tax treaty be limited by other provisions in the internal revenue code even if the saving clause does not apply?

I am a US resident. In 2019, I had some income from a short employment in Finland. I know I can claim the Foreign Tax Credit, which is equal to the minimum of the taxes I paid to Finland and the taxes ...
user121664's user avatar
2 votes
1 answer
72 views

Is IRS dual-status optional?

In 2019 I was a resident US alien for IRS purposes. In September I permanently moved out of the US. Thereafter, I got a job in the foreign country and received foreign salary for the last months of ...
foreigner's user avatar
0 votes
1 answer
71 views

1042-S in the mail after staying the US as J-1

Last year I stayed in the US for one month with a J-1 exchange visitor visa. This was part of my job (following an educational bootcamp at a higher educational institution), so my own employer still ...
Bram Vanroy's user avatar
3 votes
1 answer
300 views

Getting money transferred from abroad from my parents, would I get taxed?

I'm originally from Japan but living in the UK permanently on spouse visa now. My parents transfer money from Japan to my British bank every now and then like £8000 every year as a gift, does this ...
user99739's user avatar