foreign income? New US address for the company

[Possi]

My clients live and work in Romania. He is retired, but she is a teacher. She has regular foreign wages.

Her regular job is for a school and that income is clear to me. The second income is for a couple of extra classes she teaches, also in Romania. In the past, this income was reported similarly.

This year, the extra income was reported on a 1099 Misc and the address of the same school as before, has changed to Bethesda, MD. She earned the money while in Romania.

Since this is foreign earned income, is it included on Line 7 and included on the 2555, excluded as foreign income?

 

[Possi]

It only took a little bit of GOOGLE.

I got it. Thanks!

You are in business abroad as a consultant and qualify for the foreign earned income exclusion. Your foreign earned income is $95,000, your business deductions total $27,000, and your net profit is $68,000. You must pay self-employment tax on all of your net profit, including the amount you can exclude from income.Oct 26, 2016

Self-Employment Tax for Businesses Abroad - Internal Revenue Service

https://www.irs.gov/individuals/...taxpayers/self-employment-tax-for-businesses-abroad

[Lynn EA USTCP in Louisiana]

Is she paying into the Romanian equivalent of social security?  If so she could request a certificate of such coverage and be exempted from having to pay US Social Security.

 

[Possi]

She is. I'll check in to that, but the income subject to SE tax is less than $3k.