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Overseas contractors tax write-offs

Varies

What Can Overseas contractors Write Off?

Short answer: Contractors working abroad may exclude about $132,900 of foreign earned income for 2026, but still owe self-employment tax and deduct business costs.

The foreign earned income exclusion doesn't reduce self-employment tax; a totalization agreement may.

Records to keep: Keep receipts, 1099s or W-2s, a mileage log, and a note of the business purpose for each expense.