- Hong Kong to/from San Francisco
- Hong Kong to/from Chicago
- Hong Kong to/from Ho Chi Minh City
- San Francisco to/from Nagoya
· Hong Kong is a red herring. As a U.S. citizen, she has to pay income taxes on her worldwide income.
· She however does get some tax relief from the double taxation this would otherwise entail. She gets to offset her Hong Kong taxes against her otherwise payable U.S. income taxes. This is the “foreign tax credit.”
· I recall a “foreign income” exclusion in the tax code. I am a bit fuzzy on it, though.
· Wait, she comes into and out of the U.S. on a regular basis. Some of her income has to be U.S. source.
· Hopefully the airline sent her something – maybe a breakdown of her flight and service hours.
- Hours in U.S.
- Hours in Vietnam
- Hours in Japan
- Hours in Hong Kong
- Hours in international air space
· I propose to divide her hours in the U.S. into 1,960 total hours.
· So? She did not earn it within the U.S., so how can it be anything other than “foreign?”
- The term ‘foreign country’ when used in a geographical sense includes any territory under the sovereignty of a government other than that of the United States.”
· You mean the word “sovereignty?”
· No one’s. That is why it is international.
· That is ridiculous. According to this reasoning, an American on the moon would have all his/her income considered U.S. source.
· Who dreamed this up?
· How did it turn out for the flight attendant?
· I could but I won’t.