IRS Decides New Tax Home Case on Individual Basis
If you are an individual who spends much of the year living outside the United States, you might qualify for the Foreign Earned Income Exclusion. However, as a new Tax Court case shows, you need to be careful in determining where your "tax home" is. It is not necessarily where you have what you consider to be your main residence. Do you know where your “tax home” is? It is not necessarily the place where you reside most of the time. In a new case, Cutting, TC Memo 2020-158, 1
What is FICA Tax and Do I Have To Pay It?
What is FICA tax? The Federal Insurance Contributions Act (FICA) is the means by which Social Security and Medicare are funded in the US. FICA also provides benefits to retirees, children who have lost their working parents, widows and widowers, and disabled workers who qualify for benefits. For self-employed people, there is an equivalent law called SECA (Self-employed Contributions Act). Contributions to FICA are deducted from each employee paycheck. Many workers in the US