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Mail Bag #1: Visiting US for Work / Adoption Credit / PFIC Filing / $1000 Child Tax Credit with FEIE

We get a lot of tax questions by email. They are often too short to warrant publishing a standalone article –  we realized that it would be a good idea to collect some of the most interesting questions and post them on our site.

This is the first installment of this piece that we will endeavour to publish weekly. Enjoy!

1. I live in the UK but visit the U.S. for work – does this affect my tax position? – Andre, United Kingdom

Yes, very much so.

Even if you qualify for the Foreign Earned Income Exclusion, if you visit the U.S for work, this is considered U.S. Sourced Income – and is not eligible for exclusion.

This often catches many taxpayers by surprise. As an example – if you visit the U.S for 5 days to give a speech at a conference representing your company, where 3 of those days were for the conference and two for vacation, 3 days worth of income would be considered U.S sourced and not eligible for exclusion.  If you gave that same speech via SKYPE from abroad, that would not be U.S sourced income.

Now – let’s say you visited the US for a fellowship programme. If you work for a university or something of the sort and these visits for the program are work, then it is work income. If you are, say, a basketball player, and go to the US to do fellowship courses in anthropology, that is not work but you are there on your own intellectual pursuits.

Whole Story at TFX.

From → TFX Articles