My client's son is living and working abroad, in Jordan. He gets paid by a Jordanian company and the money is directly deposited with no accounting for the income.
Is that income subject to US taxes?
Is that income subject to US taxes?
-
"I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur Godfrey -
Is he a US citizen or RA?
Americans must report all worldwide income and pay the appropriate taxes. He may qualify for the foreign income exclusion if he meets the residency tests. Don't forget the state income tax, they will want their cut also, and likely do not have a foreign income exclusion law like the IRS.
And you might remind them of the foreign bank account reporting requirements."A man that holds a cat by the tail learns something he can learn no other way." - Mark Twain -
US Citizen
Yes, he is a US citizen. I told his mother that I thought it was all taxable and that he needs to have a record of the money he was paid.
Since there is no withholding, wouldn't it all be reported as Sch C income subj to FICA?
Maybe I should not be doing his tax return if there are too many laws I am not familiar with.
He as a small W2 from before he left the country. Also has 1098T, but most of the expense is offset by scholarships.
Thanks for your help."I am proud to pay taxes in the United States. The only thing is I could be just as proud for half the money." Arthur GodfreyComment
Comment