Meeting with new client and trying to be prepared. Husband is contractor in war zone. I believe the wife is in the U.S. So I am assuming tax home is U.S. I think the husband is not military. Am I correct in thinking the foreign income is all taxable and not subject to exclusion? If this is correct, are there expenses or per diem to offset the income? Could anyone point in the correct direction for concrete answers? Thank you in advance!
-
-
contractor earnings report
Of course you are ASSUMING that the contractor husband WILL get a 1099 OR a W2!
I had a client working for "unnamed" contractor in desert, was told NO earnings would be reported to ANY government! mmm....Comment
-
If the husband meets the requirements of being out of the US for the required time, the income should be eligible for exclusion from tax. I'm working with one now whose husband got mad, shot off his mouth and got fired after 8 months. One of his buddies, smarter than him, went to Mexico and spent the rest of the required time out of the country to avoid this problem.
He had completed the form allowing the employer to exclude his checks from having federal taxes withheld and they are now in a world of hurt.
LTOnly in government or politics is a "cut in spending" really an increase. It's just not as much of an increase as they wanted it to be, therefore a "cut".Comment
-
Thank you all for your input, after reading the recommendations I see that I was getting tripped up by the wife living in the U.S. But he may qualify regarding the foreign tax home. She can live in the U.S. and he can still have a foreign tax home if the requirements are met, correct? Thanks again!Comment
-
Foreign Earned Income
I think you should request an opinion letter from Tim Geithner, the new Secretary of the Treasury...
He is now intimately familiar with the taxation of foreign earned income.
LMAO
BMKBurton M. Koss
koss@usakoss.net
____________________________________
The map is not the territory...
and the instruction book is not the process.Comment
Comment