There is much confusion about what constitutes foreign earned income with respect to the residency location, the location where the work or service is performed, and the source of the salary or fee fee. Foreign residency or extended periods abroad for the tax payer can be a qualification to avoid double taxation. In previously mentioned scenario, it is wise saved $7,500, but the government considers it income. Generally if the amount is over $600, then your creditor essential to send merely form 1099-C.

How do you find it income? The irs considers “debt forgiveness” as income. So how can find out of accelerating your taxable income base by $7,500 along with this settlement?

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