Foreign Earned Income Exclusion Tax help

[kmgilroy89]

https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion

I'm wondering if I qualify for this or if there's anything I can do to qualify. I work as a W-2 employee for a trading firm, but I don't have a salary. It's all based on percentage of trading profits. I plan to spend less than 35 days in the United States next year, so 330+ fully abroad. However, I'm not planning to base myself in any single country. I basically plan to just travel the world. Can I qualify or am I stuck paying federal income tax to the IRS?

Thanks.

 

[ph1l]

https://www.greenbacktaxservices.com/knowledge-center/tips-updates-foreign-earned-income-exclusion/

How to Qualify for the Foreign Earned Income Exclusion
There are two tests that can determine whether you qualify for the FEIE, the physical presence test and the bona fide residence test. 

1. The Physical Presence Test
The physical presence test is one way Americans living overseas can qualify for the FEIE and save money on their US tax return. To pass this test, all of the following must be true:

• You have foreign earned  income
• You have a tax home in a foreign country
• You have been physically present in a foreign country for at least 330 days out of any 12-month period

The concept of a “tax home” is often misunderstood. A tax home is where an individual is permanently or indefinitely engaged in work—regardless of where their personal residence is. To quote the IRS: “Having a tax home in a given location does not necessarily mean that the given location is your residence or domicile for tax purposes.”

However, if you’ve retained a personal residence (abode) in the US, you can’t be considered to have a tax home in a foreign country. Your abode is determined by where you manage your personal, family, and economic ties. Where your family is can certainly play a role in determining your abode, but if you show that you’ve established a residence in your host country by integrating into society, having a home, and setting up a bank account, among other factors—your abode could be your host country.

So, it seems to hinge on whether the IRS would consider you having a tax home in a foreign country without an address in the U.S. If the answer is yes, you probably can exclude the 2024 foreign earned income exclusion ($126,500) from being taxed.

But if the answer is no and you still try to use it, you might be yet another presidential candidate with tax issues.

 

[VicBee]

Very difficult to consider yourself a US citizen with no permanent residence in the US and no physical presence of at least 180 days in any one country, even if that's true. It's easier to claim the deduction if you are anchored somewhere and can claim residency (that's what I do).