I have a new client and I am not familiar with any special exemption to taxation for a Missionary working abroad being paid as an employee. There are no federal taxes being withheld on their form W2.
The previous CPA took the FEIE on their 2022 tax returns - although the client did not pay taxes in the foreign country of residence. My understanding is that in order to take the FEIE you must report and pay taxes to the foreign country where you reside. My client has spoken to many other missionaries who all claim the FEIE but may or may not be reporting their income in the foreign country where they claim it.
What am I missing?? Is there some exemption I'm not aware of? Or are missionaries evading taxes by taking the FEIE and not reporting it on the other side?
You already asked. You are being helped by volunteers. It makes it harder for everyone when the same issue is asked in duplicate, as now we have to chase the question and replies across the forum to get caught up. Your original is right here:
If you have more to add or a follow up, just update your own topic with the new comment.
You also stated this: "Thank you in advance for providing knowledgeable feedback and not patronizing comments"
Well, it's a discussion. Playing nice with others goes both ways.
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