2555 Exclusion/SE Tax

[barosser]

Am I correct that foreign income is excludable from income tax but not Social Security?

TP is a dog handler in Iraq on a contract basis with company, he is given a 1099 for his earnings. Does he pay Self Employment tax on the amount less any expenses he incurred.

Thanks

[kcjenkins]

Foreign income may or may not be excludable. As he's getting a 1099, odds are this is income from a US business, and thus not excludable. You need more info. Start by reading Pub 514.