The International Schools Review Forum

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.

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.

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

Thanks psycho! That's a huge relief!

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.