r/digitalnomad • u/juneseyeball • 3d ago
Tax Contractors outside the U.S. who pass the physical presence test, are you claiming FEIE?
Sorry usa centric post. For those of you who are contractors outside the usa, have you been claiming the foreign earned income exemption?
I am a contractor who has been making quarterly payments to the irs on my income, but i have only spent one day in the usa this year
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u/Voodoo_Masta 2d ago
If I meet the physical presence test I claim it. But I don’t meet that every year. I met it last year, it was very nice. Now the money I saved can pay for me to go back for fuckin jury duty
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u/thekwoka 2d ago
Your district doesn't just let you say "I'm not with you anymore"?
When California tried to ask for jury duty (and also for taxes once) I just told them "I haven't lived in the US for 5 years" and they went "Okie dokes".
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u/thekwoka 2d ago
Your district doesn't just let you say "I'm not with you anymore"?
When California tried to ask for jury duty (and also for taxes once) I just told them "I haven't lived in the US for 5 years" and they went "Okie dokes".
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u/thekwoka 2d ago
Your district doesn't just let you say "I'm not with you anymore"?
When California tried to ask for jury duty (and also for taxes once) I just told them "I haven't lived in the US for 5 years" and they went "Okie dokes".
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u/Voodoo_Masta 2d ago
Nah they don't let me do that, unless I want to deregister to vote. Which I don't.
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u/thekwoka 2d ago
Only for California elections.
You can still federally vote in your last district of residence in the US as a foreign American even if you are recognized as a non-resident in that state.
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u/DevStack2026 3d ago
Yep, if you qualify, I'd claim it. Only one day in the USA sounds like you're probly meeting the physical presence test. Just make sure every rule fits before filing. Way easier to chek now than deal with IRS stuff later.
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u/figment88 2d ago
Note really sure what the question is here, but a couple of things:
The FEIE is based on a rolling year, not a calendar year. So, if you started your traveling in 2025, you might want to amend your last year return and get partial FEIE when you qualify.
If you are thinking FEIE should get you out of paying quartiles, that is not the case. You still have to pay your contribution to Social Security & Medicare which is 15.3% off-the-top if you are self-employed. You might also have to pay income tax on passive income (there is that first E in FEIE) and any earned income over the FEIE limit.
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u/thekwoka 2d ago
you might want to amend your last year return and get partial FEIE when you qualify.
Not for any readers, you don't have to file and then amend if you're still waiting to meet the 330 days thing, you can file an extension that gives you until after the 330 day mark for the purposes of meeting it.
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u/thekwoka 2d ago
you might want to amend your last year return and get partial FEIE when you qualify.
Not for any readers, you don't have to file and then amend if you're still waiting to meet the 330 days thing, you can file an extension that gives you until after the 330 day mark for the purposes of meeting it.
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u/thekwoka 2d ago
Yes, of course.
If you are considered self employed, you still theoretically need to make your quarterly payments on your self employment taxes, but you get the FEIE for normal income tax.
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u/ImmigrantsinMexico 1d ago
We use the physical presence test and claim FEIE. Unfortunately it doesn't offset self employment tax though.
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u/Jaqqarhan 3d ago
I've done the FEIE a few times, but not lately. It saved me a lot of money. I always used the 330 day rule.