# US citizen living abroad earning USD



## YOYO72

Hello,

I really appreciate your help.

I’m a US citizen, I left the US to Libya, but I kept working for the same US employer remotely and I got a 1099-MISC. the 1099 income was $22,200 

I’m not sure if this income is considered a foreign income and if I have to file Form 2555, or is this not considered foreign income?

Would this income be excluded from tax because it’s under $80k ?

I would really appreciate it if you give me some insight of this situation

YOYO


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## Bevdeforges

If you are a US citizen, you must file a US tax return if your income exceeds the threshold filing levels. ($22,200 puts you over the filing threshold no matter your filing status)

If you performed the work while outside the US, then you can take the FEIE (foreign earned income exclusion) using form 2555. You declare all worldwide income and then on form 2555 you exclude your earned income from your taxable income (up to the current limit, which is something over $92,000 I believe). 

The fact that you're getting a 1099 from your employer means that the IRS is expecting a return from you.
Cheers,
Bev


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## YOYO72

Bevdeforges said:


> If you are a US citizen, you must file a US tax return if your income exceeds the threshold filing levels. ($22,200 puts you over the filing threshold no matter your filing status)
> 
> If you performed the work while outside the US, then you can take the FEIE (foreign earned income exclusion) using form 2555. You declare all worldwide income and then on form 2555 you exclude your earned income from your taxable income (up to the current limit, which is something over $92,000 I believe).
> 
> The fact that you're getting a 1099 from your employer means that the IRS is expecting a return from you.
> Cheers,
> Bev


thank you Bev,
since I got 1099, the IRS didn't allow me to use form 2555, so I hired an accountant and he filed my taxes as I was not living abroad. the only thing I got is no State tax return filing.
best regards
Yoyo


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## barribr

Bev is correct in that you can file a Form 2555 as long as you meet the bona fide residence or physical presence test. Since you are on a 1099 then you will have to include the income as business income which is fine to do. You just need an experienced expat accountant to handle this, if it is worth it to you. 

Alternatively, you could possibly just file a foreign tax credit, Form 1116, and potentially get the same benefit.


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## med96ben

One has to wonder if the CPA union is behind all this! ;-) I mean, they make it so complicated just because one has the gall to live outside the US. Svould really be a no brai er provess that dies not require all the excess capital in doing things correctly. Spent 100 USD just to send the FBAR securely this hear!


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## YOYO72

med96ben said:


> One has to wonder if the CPA union is behind all this! ;-) I mean, they make it so complicated just because one has the gall to live outside the US. Svould really be a no brai er provess that dies not require all the excess capital in doing things correctly. Spent 100 USD just to send the FBAR securely this hear!


Well, that might be correct, after struggling trying to do my taxes using TurboTax, I had to hire an accountant because of my situation was a bit weird "live outside the US and getting a US income" and I paid him $300, glad that I got tax refund that paid for the accountant


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