Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

What does income earned in U.S. on business mean with respect to Form 2555?

JOFI
Level 7
Level 7

A client qualifies for the Foreign Earned Income Exclusion via the bona fide residency test.  Does anyone understand what is meant by the question on whether the taxpayer earned income while in the United States?  My client returned to the States for a short business trip, where he put in three full days for his employer (a multinational corporation).  

Does this meet the definition of income earned in the U.S., even though he is just getting his normal salary?  Or is this mean to cover additional work beyond his regular pay while abroad?

Can't find a clear definition anywhere, so appreciate any help.

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
itonewbie
Level 15

Foreign earned income exclusion, by definition, only excludes income earned for services performed overseas during the foreign assignment/employment within the qualifying period.  US workdays are always subject to tax.

---------------------------------------------------------------------------------
Still an AllStar

View solution in original post

0 Cheers
2 Comments 2
itonewbie
Level 15

Foreign earned income exclusion, by definition, only excludes income earned for services performed overseas during the foreign assignment/employment within the qualifying period.  US workdays are always subject to tax.

---------------------------------------------------------------------------------
Still an AllStar
0 Cheers
ryan-a-rogan
Level 1
I had the same situation.  I am a US citizen living abroad.  The foreign earned income exclusion excludes all of my income except one week of salary from being in the US on business.  This results in a gross income of only a few thousand dollars.  Can I apply the standard deduction to this small amount of US income and reduce my taxable income to $0?  or are there any restrictions on applying the standard deduction to US income, if you have used the foreign earned income exclusion?
0 Cheers