Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Foreing earned Income (https://www.askmehelpdesk.com/showthread.php?t=198429)

  • Mar 25, 2008, 09:16 AM
    NUMILA
    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
  • May 2, 2008, 01:14 PM
    AtlantaTaxExpert
    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,

  • All times are GMT -7. The time now is 03:30 AM.