“I do consulting work in the entertainment business, mostly outside of the US, and I am paid frequently by wire deposits directly into my account, the largest deposits 10,000.00.....I don't meet the foreign earned income test,”===========>You are NOT subject o to foreign earned income exclusion credit. UNLESS you , as a qualifying U.S. citizen / resident alien who live and work abroad, you are not able to exclude from your income all or part of your foreign income received as compensation for your personal services. if foreign taxes were withheld/taxed on your foreign income .these withheld amounts/taxes can be taken as a credit against your income taxes or as an itemized deduction on Sch A line 8 or you can claim it on 1040 line 47 by filing form 1116.
“ and I don't think they are withholding taxes in the various countries I work out of.”=======>Not sure; you need to check it yourself on your foreign income.
“How do I report this or do I have to report it.....I have no problem reporting it....but on 87,000.....they say I owe 25,000.......seems exorbitant can you guide me?”==========>Then as long as your income overseas are taxed by foreign taxing authority(ies) , you need to file form 1116 to claim yur FTC on your US returns, fed and state returns. |