I am self-employed and all of my income is excluded under the Foreign Earned Income Exclusion. Why does my return show a balance due?

I am self-employed and all of my income is excluded under the Foreign Earned Income Exclusion. Why does my return show a balance due?

Self-employed taxpayers must pay self-employment tax on their net business income based on the IRS’ current rates, unless you are in a country with a Totalization Agreement. For 2017, the Social Security tax rate is 6.2 percent of the first $127,000 you earn during the year. If you’re self-employed, this means you must pay a…

I am a U.S. taxpayer residing abroad, and I have a child who was born abroad. Can I claim my child as a dependent on my tax return?

I am a U.S. taxpayer residing abroad, and I have a child who was born abroad. Can I claim my child as a dependent on my tax return?

In general, you can claim exemptions for individuals who qualify as your dependents. To be your dependent, the individual must be a U.S. citizen, U.S. national, U.S. resident alien or a resident of Canada or Mexico for some part of the calendar year in which your tax year begins. Children usually are citizens or residents…