Just had a client call and he will be there for one year as a contractor. His question was, do I have to pay taxes on foriegn income? I told him that it doesn't qualify as a foriegn country.
Was I right?
Was I right?
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Guantanamo Bay workers do qualify for the foreign earned income exclusion if they meet the tests. See IRS Notice 2006-84. Also current notice from IRS 7/13/13, which details the exceptions to Pub 54 info. -
To meet the bona fide residence test or the
physical presence test, you must live in or be
present in a foreign country. A foreign country
includes any territory under the sovereignty of a
government other than that of the United
States.
While Cuba is the country, Guantanamo bay is fully controlled by the US. Anything that goes on in Guantanamo bay has no effect on Cuba.
ADDED: BURKE...YOU ARE CORRECT............thanks
This notice concludes that income from performing services at
the U.S. Naval Base at Guantanamo Bay is not income earned
in a restricted country (Cuba) for purposes of the limitation set
forth in section 911(d)(8)(A) of the Code and thus, an individual
working at Guantanamo Bay is eligible for the section 911
foreign earned income exclusion, provided that the other requirements
of that section are met.Last edited by BOB W; 02-04-2014, 05:00 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
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