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    spikeehead's Avatar
    spikeehead Posts: 5, Reputation: 1
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    #1

    Mar 14, 2008, 05:53 AM
    Foreign Tax Exemption for a Sole Proprietorship
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 1, 2008, 10:31 AM
    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.
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