Income tax on income from work or self-employment is the largest part of your U.S. liability. If you live outside the U.S., you may benefit from tax credits and earned income exclusions, which may reduce or eliminate the payments you need to make to the IRS. The employment contract or the contracts or agreements attached to it may indicate the essential liability of the contracting parties. The employer`s contractual liability to the worker cannot be less and that of the worker may be greater than that provided by this code or other federal laws. A training agreement must include the names of the parties; The specific occupation, specialty and qualification acquired by the trainee; The employer`s obligation to allow the worker to undergo training in accordance with the training agreement; the requirement for the worker to undergo training and work for the employer under an employment contract, depending on the occupation, specialty and qualifications acquired within the time frame set out in the training contract; Training time employee`s salary during training. Collective agreements, collective agreements and employment contracts cannot contain conditions that reduce the level of workers` rights and guarantees set by the Labour Act. If such conditions are included in a collective agreement, contract or employment contract, they are not enforced. Breaks for the feeding of a child (children) are included in the working time and are subject to payments corresponding to the average wage. If the wages (functions) are not met for reasons that do not depend on the employer and the worker, at least two-thirds of the basic salary (salary) is reserved for the worker. If you receive more than $107,600 in self-employment, you can exclude $107,600 from your salary. Women who have children under the age of 1.5 who are unable to perform the previous work must, upon request, be placed on request for alternative employment until the age of 1.5.
There are a few exceptions, for example, if you need to return to medical treatment. But for the most part, the tests you need to perform to qualify for the exclusion of foreign professional income revolve around being outside the United States for 330 days or living a full calendar year abroad. Discuss your decisions with your tax advisor before you make them! Planning ahead can help you avoid tax problems later on. Your tax advisor has your future interest in mind. Contact one of our specialists to discuss how to optimize the foreign tax credit and the exclusion of foreign income.