Thread: Income Tax & Working Abroad for Foreign Company

I do have a question, don't know how specific or general it is. I will be working abroad as a private contractor for a company based in Europe. I am wondering what the laws/process is for having to claim income tax on such an income. I have also been informed there are methods for becoming Tax Exempt if you are only Stateside for a given amount of time in a years term. If someone could help answer some of my questions, I'd greatly appreciate it. Sorry if you have answered something like this before.

Never mind, after reading up on the "Foreign Earned Income Exclusion", I believe I know the answer ... and will have to discuss it further with a CPA. Thanks for your time in reading this.

Thank You

When doing some research I found this http://www.irs.gov/businesses/small/...=97130,00.html Did you find an answer to your question?

US Income tax is based on "US persons" worldwide income (source of income rule). Previous
statement notwithstanding, US persons residing in non US jurisdictions (be cautious here) are
able to avoid US income tax IF particular circumstances exist. Example, non US residency and
source of income is nondomestic. Is the payment classified as "war income"?

Consider the source of income factor. Is the income derived from a US source? Is the
character of the income earned income (wage or salary), NonWage income, or capital
gain? Will you or your spouse reside in the US part-time?

Cook v Tait:
http://openjurist.org/265/us/47/cook-v-tait