April 30, 2012

U.S. Missionary Taxed on World-Wide Income

Question:

My 22 year-old son is a missionary in north Africa. He received a W-2 for his 2011 compensation. Is it taxable in the U.S.?

Answer:

Yes, world-wide income must be reported both for federal and state income taxes. However, he may be able to file Form 2555 to receive the Foreign Earned Income Exclusion.

The members of my Federal Taxation I class at Maranatha Baptist Bible College in Watertown, Wisconsin have taken on the challenge of study and research to answer posted questions. James Jorgensen of Owatonna, Minnesota gets credit for this one.

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