Case Study 3: Sources of Earned IncomeEarl works and lives in the Bahamas. During the tax year, he worked 49 weeks in the Bahamas. He attended a business meeting in Florida for one week and was on vacation for one week. One-fiftieth or 2% of his wages are not foreign earned income, because of the week spent working in Florida. Click here for an explanation. If a taxpayer works predominantly in a foreign country, but does some work in the U.S., an adjustment must be made to the total of foreign earned income. |