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    jonk's Avatar
    jonk Posts: 2, Reputation: 1
    New Member
    		  
    #1

    May 6, 2012, 03:25 PM
    US foreign earned income
    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
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 6, 2012, 04:46 PM
    It will have no effect on your Foreign Earned Income Exclusion, tjhough you MAY have to file TWO Forms 2555.
    jonk's Avatar
    jonk Posts: 2, Reputation: 1
    New Member
    		  
    #3

    May 6, 2012, 06:12 PM
    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
    taxesforaliens's Avatar
    taxesforaliens Posts: 649, Reputation: 117
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    #4

    May 6, 2012, 06:42 PM
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #5

    May 7, 2012, 06:50 AM
    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%.

    I am very knowledgeable about these issues. If you want my professional help, double-click on my title above and scroll down to my profile/signature. You will find my email address and websites there if you cannot see it on this page.
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