I have been doing consulting abroad in Europe for the entire year 2007 for work. I am a US and an EU citizen. My permanent residence is in the US. I bill my client through my DE Sole Proprietorship. I have not lived in the US at all during this time. I want to know if I can qualify for a foreign exemption and what forms I need to file. Am I still obligated to pay self-employment tax. Can you recommend an online filing site that supports taxpayers like me (who file from abroad.) Thx.

You CAN claim an exemption of the INCOME taxes using Form 2555 (Foreign Income Exclusion).

However, you are STILL obligated to pay the self-employment taxes using Schedule SE.

The company I represent ca help you in filing this return; email me at the address below if you are still in need of this service.