# Worked overseas all year. On US payroll. tax?



## 7000kilo (Oct 17, 2010)

Hello Expats,

I am new to the forum, excuse me if my question has been answered before. I tried reading IRS website, too convoluted for me.

I am a US citizen, working for US company on US (USD) payroll. My salary is paid in USD going to my US bank account.

In 2011, I spent 50 weeks in China and only 2 weeks in the US (for business meetings).

QUESTION: I know I need to file US tax, but I am responsible for the US tax when I've physically outside the US for 50 weeks in 2011? I do not pay China tax.

Any help is greatly welcomed,
Lee


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## Bevdeforges (Nov 16, 2007)

You need to read through Publication 54 http://www.irs.gov/pub/irs-pdf/p54.pdf from the IRS website. I sounds like you're probably eligible for the Foreign Earned Income Exclusion, though you have to check the criteria for yourself. If that's the case, you can exclude the first $92K or so of earned income (i.e. your salary) from US taxation (using form 2555).

Where your salary is paid, and in what currency doesn't really matter. The fact of your being on the "US payroll" means that you're being withheld for taxes that you may be entitled to get back (at least some of them). 
Cheers,
Bev


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