I am a us citizen working in a foreign country for company A. This year I will have completed the requirements for the foreign earned income tax benefits (physical presence). I have been offered a programming side job for US company B which I can complete in the foreign country. The job will pay 10k. Will this affect my foreign earned income benefits? How will the 10k be taxed?

Thank you

It will have no effect on your Foreign Earned Income Exclusion, tjhough you MAY have to file TWO Forms 2555.

Thank you for the quick response!

Will the 10k be taxed in the 10k bracket or will it be (10k + foreign income)

Can anyone suggest a good accountant that is knowledgeable on these matters?

Thanks again

The 10k would be foreign earned income as well.
If your total income is above the amount you can exclude, the tax rate would be determined taking the excluded income into account.
If you are above the limit, you might be better off using the foreign paid tax credit if the taxes you pay in the foreign country are comparable to or more than US taxes.

If the combination of your Company A salary and Company B salary does not exceed the $91+K limit, then the $10K will also be excluded.

If the $10K does exceed the $91K limit, it will be taxed at your marginal tax rate, probably 25%.

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