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Foreign income? Exclusion???

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    Foreign income? Exclusion???

    Dyna Corp, a public traded company with a Falls Church, Va, address, contracted with my client for his services in Dubi(sp). He only gave his name and social security number with the contract information and we got the impression that he would receive a W-2, but we got nothing for 2006. He spent 355 consecutive days there, 10 off early because of vacation time. I first do not understand why it he did not receive the W-2 or 1099 and second they have told him it is exempt, because of foreign income exclusion??. The combined compensation, housing and food was around $70,000 for May 06-to May 07. I exchanged E-mails with someone last December that led me to believe there would be a W-2. There was no mention of any treaty. After being obnoxious I received some phone numbers to inquire further. What questions do I need to ask. Unless there is some magic treaty there seems to be SE tax no matter what???? They have said there is no need for a W-2 or 1099 everything is exempt, foreign, but I need more info.

    #2
    foreign income

    You can exclude up to $80,000 of foreign earned income from income tax, but it may be subject to SS if the worker qualifies under one of two tests. It appears your client may qualify under the physical prescence test if he was physically present in the foreign country for 330 full days during a period of 12 consecutive months. See form 2555.

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      #3
      Thanks

      but my main question is why do they not supply a W-2 or 1099???????

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        #4
        Based on the facts as presented they should!

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