Self Employment

[S T]

Question,

How do we report for a US citizen that is residing in Argentina and operating an internet business, all receipts are received through paypal into US bank account?

Spouse who is operating the business is US Citizen, has a son as a dependent that is a US born citizen, husband is non US citizen, resident of Argentina who has Argentina earnings, however has a US social security number assigned back in 1980's.

Spouse wants to report income to obtain Social Security Credits.

Why me?

Thanks for any insight and direction,

Sandy

[David1980]

Report on Schedule C. That should generate the SE tax. Foreign income exclusion 2555 to take off income on line 21. If they're below max income for 2555 they'll have no fed income tax but will have self-employment tax.

Assuming I understand the question.

[S T]

Not sure I understand

Thanks David,

I am not even sure I understand the question I posted, I am taking in baby steps to arrive at the end result. You will see that there is more later.

Thanks for your thought. So for now this part of the equation is clear in my mind, and I will move to the next part.

Yes, isn't there ALWAYS MORE!

Thanks for your post,

Next questions, since Husband is NOT a US citizen, and works/earns in Argentina, we do not have to report his income, correct.

Then next question, is since they are married, and husband is not reporting Argentina income, we file as MFS on form ????



Sandy

[Gretel]

Question: If hubby has SS# can it be assumed that he is a permanent resident? If yes, I think he has to report word wide income. If no, I tend to agree with your conclusions that if they file MFS his income doesn't need to be reported.

[S T]

More

Husband was issued a SSN# sometime in the 1980-1990 time frame, for work only. Husband is not a US citizen.

Neither Wife (US Citizen) or Husband is residing in US. both living in Argentina.

Sandy

[Gretel]

Sandy,

There are some things you need to clarify with the TP. If they choose in earlier years to treat non-resident alien as resident alien it appears they are stuck with that choice unless they revoke it.

I tried to find info on filing status but wasn't able to. I am not sure if MFS is correct or Single. Below please find a link that might help you.

http://www.irs.gov/publications/p54/index.html