Ever wondered if your global business ventures could be affecting your U.S. taxes more than you realize? 

In the podcast episode, Mike Jesowshek delves into the intricacies of foreign income for small business owners, covering essential aspects such as reporting requirements, types of foreign income, tax treaties, exemptions, the foreign earned income exclusion, the foreign tax credit, and compliance with reporting obligations. He emphasizes the importance of U.S. citizens and residents reporting worldwide income on their U.S. tax returns, regardless of where the income is earned. Mike also discusses strategies to mitigate double taxation, such as utilizing tax treaties and claiming foreign tax credits or income exclusions, while underscoring the critical nature of maintaining accurate records and understanding compliance requirements to ensure transparency and adherence to tax laws.

[00:00 - 05:00] Introduction to Foreign Income for Entrepreneurs

• Mike Jesowshek introduces the topic of foreign income reporting for small business owners.
• Discussion on the requirement for U.S. citizens and residents to report worldwide income.

[05:00 - 10:00] Tax Treaties, Exemptions, and Foreign Earned Income Exclusion

• Explanation of tax treaties and exemptions to avoid double taxation.
• Details on the foreign earned income exclusion, including eligibility criteria.

[10:00 - 15:18] Compliance and Reporting Requirements

• Overview of the compliance and reporting requirements for U.S. taxpayers with foreign income or assets.
• Explanation of FBAR reporting requirements for individuals with foreign bank accounts or financial interests.

Quote:

"There might be a credit, there might be some exclusion of it, there might be some exemptions, but the IRS wants to know about it." - Mike Jesowshek, CPA

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

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