Can Form 1120 Schedule M 3 Applicable 2019-2024

Hi everybody, I'm deep in make--can with Greenback Expat Tax Services. Our question today is: I earn an income for my company in Belgium, so do I need to file for the company and do I need to file for myself? Well, really this is going to depend a little bit on how you have the company set up. If your setup is a foreign corporation, you would need to report your foreign corporation on Form 5471. Then, you'd be reporting your business, and then you'd file for yourself separately. Now, if you're doing this with the foreign corporation, you're not going to be required to pay self-employment tax. However, if you're set up as an LLC or some kind of pass-through entity in the United States, or you're not really incorporated, you're just running your business as a sole proprietorship, meaning you don't have a corporate entity, you're just running a business, then you will be required to pay self-employment tax and your business will flow through onto your personal tax return. So, you're not going to be reporting the business entities separately from your personal tax return if you're a U.S. LLC or sole proprietorship. Again, I'm just going to mention that as far as self-employment tax, that gets paid before the foreign earned income exclusion. So, if you are required to pay self-employment tax, that's going to be a cash expense to you because it's not going to be covered by the foreign earned income exclusion. As always, if you have any questions, please let us know.