Foreing earned Income

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Mar 25, 2008, 08:16 AM

NUMILA

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Join Date: Mar 2008

Posts: 1

Foreing earned Income

I am a resident of NJ but I accepted a job from a company in New Zealand. I performed all of the work from my home in NJ, but the New Zealand company wired me weekly paychecks directly to my NJ Business checking account. How do I account for that income? Do I fill out form 2555 even if I never stepped foot in the foreign country? They never took out any taxes. How should I account for this income

Answers

May 2, 2008, 12:14 PM	#2

AtlantaTaxExpert Tax Expert Join Date: Feb 2005 Location: Atlanta, Georgia Posts: 10,043	Negative. That is income earned within the confines of the U.S. and is therefore fully taxable as earned income. Because the New Zealand employer is NOT a U.S. employer, YOU must bear the cost of paying BOTH sides of the FICA taxes, which means the income is treated as Form 1099-MISC income. In other words, you are running a business and must file Schedules C and SE with Form 1040,

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