3 ms·

to add additional info, americans are taxed on income above 100k roughly per year that is earned from abroad. so if you are having above average success and you

to add additional info, americans are taxed on income above 100k roughly per year that is earned from abroad. so if you are having above average success and you are making 200k per year abroad, then you will have a taxable income of 100k (roughly 19% effective rate) If you are earning income from a US based source, such as payroll earnings from a US company, I believe you will be taxed in full, federal, state, medicare, social security. That's about 30% on 100k income if you are unmarried I don't know how it works if you want to try to persuade the IRS that even though you are working for a US company with a W2 that lists a US address, you are "not living in the US". Maybe you could get away with it, but technically your company would have some legal problems for not getting you the right visas to "work" in a foreign country As an American, i'd say its easier just to pay us tax and hop around on tourist visas

nodamage 10y ago
For purposes of the FEIE, whether you are being paid by a US company or a foreign company is irrelevant. As long as you qualify for the FEIE under the physical presence test (more common) or the bona-fide residence test (less common), you can claim the FEIE, even if you are working for a US company and the money is being deposited into your US bank account. Source: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-what-is-foreign-earned-income https://www.irs.gov/individuals/international-taxpayers/fore... If you receive a W-2 you'll continue to pay your half of the Medicare and Social Security taxes. Federal gives you an exclusion of ~$100k, you may or may not owe state tax depending on the non-residency rules for that state, or if your state does not have income tax.
- eric-hu 10y ago
  From what I can tell, if you receive a 1099, you also have to pay for FICA (Medicare & social security) regardless of your FEIE status.
  - nodamage 10y ago
    That's correct, FEIE only exempts income tax.
- salesguy222 10y ago
  Wow, thank you very much for this info. How will your employer or foreign country of residence feel if you are not on a work visa?

nodamage 10y ago

For purposes of the FEIE, whether you are being paid by a US company or a foreign company is irrelevant. As long as you qualify for the FEIE under the physical presence test (more common) or the bona-fide residence test (less common), you can claim the FEIE, even if you are working for a US company and the money is being deposited into your US bank account. Source: https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-what-is-foreign-earned-income https://www.irs.gov/individuals/international-taxpayers/fore... If you receive a W-2 you'll continue to pay your half of the Medicare and Social Security taxes. Federal gives you an exclusion of ~$100k, you may or may not owe state tax depending on the non-residency rules for that state, or if your state does not have income tax.

eric-hu 10y ago
From what I can tell, if you receive a 1099, you also have to pay for FICA (Medicare & social security) regardless of your FEIE status.
- nodamage 10y ago
  That's correct, FEIE only exempts income tax.
salesguy222 10y ago
Wow, thank you very much for this info. How will your employer or foreign country of residence feel if you are not on a work visa?