Help- US citizen working abroad

[artp]

Client age 23 graduated from college in June 2010 and accepted an elementary teaching position in China starting in Sept 2010 thru June 2011 as part on an international educational program. Her visa will expire in June 2011 so it appears she would not qualify for physical presence exclusion unless her employment contract is renewed. She did not receive a W-2 form. The only document she has received just lists the Chinese taxes deducted from her pay. This was written in Chinese and she had a TA translate it into English. Her gross income from teaching in 2010 is $ 5300 US$. There was $215 deducted for Chinese taxes.

How does she report the income on her 1040? Wages line 7 with no W-2? Schedule C? Subject SE Tax? Can I e-file this return or paper only?

The language in her employment contract with the Chinese school would (under US rules) seen to make her an employee since they control all aspects of her work, but I am not certain that this is controlling for a US citizen working abroad.

I have not prepared a return like this before so I would really appreciate some guidance here from anyone who has experience with US citizens working abroad.

Art

[Pacun]

The tax preparation profession has changed with globalization. We all need to take a class on international taxation or tax treaties. Can someone suggest a good class?

Going back to your question, you need to check with the tax treaty between China and USA and maybe you only need to include his icome from Jan to Sept in 1040. He cannot be claimed as a dependent since he made 5.3K in 2010.