Self-Employment & the Foreign Earned Income Exclusion
Self-employed persons working abroad may claim the foreign earned income exclusion and the foreign housing deduction.
Foreign Earned Income Exclusion
You may claim the foreign income exclusion on self-employment income. This will reduce your regular income tax, but it will not reduce your Self-Employment Tax.
Housing Deduction for Self-Employed Persons
Self-employed persons working abroad do not qualify for the foreign housing exclusion. Instead you can deduct your allowable housing expenses from your Self-Employment Taxes.
