News Subsystem wrote:

- quote -

A 1099-Misc does not distinguish between domestic and
foreign income. That is up to you and the
facts/circumstances of your situation. It can qualify for
the FEIE.

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I have a question about whether or not income reported on a
1099-MISC is foreign earned income, and as such falls within
the Foreign Earned Income Exclusion.

(I have read the IRS Publication 54 "Tax Guide for U.S.
Citizens and Resident Aliens Abroad".)

I am a US citizen. I worked as a sole proprietor in the USA
until Dec 2003. In Dec 2003 I moved overseas (without a
return date, that is, indefinitely), and in 2004 I have been
in the USA for approx. 20 days during one trip.

So I guess I could say that my tax home is in a foreign
country, and I fulfill the physical presence requirement. I
assume that everything I earn here counts as foreign earned
income, and that the Foreign Earned Income Exclusion applies
to it.

However, some of my income is still from US clients (for
work performed here). If I understand that correctly, the
income from US clients would still be foreign earned income
(because the work is performed here), and the Foreign Earned
Income Exclusion applies to it, too.

But for a number of reasons, some of the income will
probably be reported to the IRS on a 1099 form, with my
previous US address (which I still maintain as a mailing
address, for bank accounts etc.)

My question is: Is it substantial for the classification as
foreign earned income that the income is reported to the IRS
on a 1099 form with my US mailing address? Independently of
these 1099 reports, I was working from my foreign (tax)
home. Can I classify this income reported on 1099-MISC forms
as foreign earned income, and can I count it towards the
Foreign Earned Income Exclusion?

Thanks for any help, hints, tips, pointers for further
reading,

Gerhard

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