2020 Income Taxes USA

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TheHuman
Posts: 27
Joined: Sat Apr 18, 2020 9:56 am

2020 Income Taxes USA

Post by TheHuman »

We've been back in the USA since January 2020 due to Covid. Since we would no longer pass the 30 days or less in the USA per year rule, would that mean we would have to pay income tax on our salary?

The company/school we work for is a non profit registered outside of the USA and they pay our Chinese income tax.

Thanks for the feedback.
FV2020
Posts: 40
Joined: Sun Oct 21, 2018 9:21 am

Re: 2020 Income Taxes USA

Post by FV2020 »

Technically, yes. However, there is a clause with the foreign residence test that states that if you returned to the US for longer than 30 days due to civil unrest or natural disaster that your income would still be tax free. I’m hoping that this year the IRS will include covid in that clause.
Psychometrika
Posts: 74
Joined: Sun Nov 20, 2016 10:08 pm

Re: 2020 Income Taxes USA

Post by Psychometrika »

The IRS is providing a waiver this year for the FEIE for you which you probably qualify.

https://rsmus.com/what-we-do/services/t ... -excl.html
TheHuman
Posts: 27
Joined: Sat Apr 18, 2020 9:56 am

Re: 2020 Income Taxes USA

Post by TheHuman »

Thanks psycho! That's a huge relief!
PsyGuy
Posts: 10789
Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

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Post by PsyGuy »

You dont need to make the traditional test as the IRS provided a waiver as long as you were in the foreign country on 1 February (earlier for China). That waiver expires on 15 July however.
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