If you are a US resident living outside of the US temporarily, earning income, several rules can apply to you. Your facts and circumstances, and intent, determine the taxation rules that apply.

In some cases, where you are earning income as a US resident, you are entitled to a substantial foreign income exclusion.

This can be done by filing form 2555 and can exclude up to 100,800 for 2015. You need to pass one of two tests designed by the IRS in order to qualify. If you are not a US resident, and earn income in the US, you still have to pay tax on that unearned income. You may need to file a special form called a 1040NR and you would not be otherwise entitled to deductions.

Contact us to talk more about your personal situation. 847-677-0224