Tax Q for Yanks overseas

J

Jayford

If you are an American overseas for the minimum 11 months per calandar year, making ALL of your income from trading, does this exclude you from the 80 or 90K per year that is tax free?

I'm not sure because:

1) Does the income have to be "earned income?"

2) My broker is in the US, so technically, maybe I am making my money in the US.

I am making the move for a few years or more in a week, and just now started thinking about this.

I would appreciate hearing from a Yank actually doing this, (or someone else who really knows the issues here).

Thanks,

Jay
 
Quote from Jayford:

If you are an American overseas for the minimum 11 months per calandar year, making ALL of your income from trading, does this exclude you from the 80 or 90K per year that is tax free?

I'm not sure because:

1) Does the income have to be "earned income?"

2) My broker is in the US, so technically, maybe I am making my money in the US.

I am making the move for a few years or more in a week, and just now started thinking about this.

I would appreciate hearing from a Yank actually doing this, (or someone else who really knows the issues here).

Thanks,

Jay
More...

In order to benefit from the foreign earned income exclusion, you will need to set up an overseas entity and have the entity pay you a salary from the trading profits. This has been discussed extensively here. Do a search under 'Taxes', 'Overseas,' or 'Havens.'
 
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