U.S.-sourced income is any revenue generated from business activities tied to the United States. Here’s how the IRS defines it:
Sales of Goods: Income from products shipped from the U.S. (even if sold to foreign customers). (Not shipped to US)
Services Performed in the U.S.: Fees earned for work physically done in the U.S. (e.g., consulting, events).
Rental Income: Payments for U.S. property (real estate, equipment, etc.).
Royalties & Licensing: Earnings from U.S. patents, trademarks, or copyrights.
Interest & Dividends: Income from U.S. bank accounts, stocks, or debtors.
Note: If you run an online business (e.g., SaaS, digital products) from outside the U.S., your sales to U.S. customers are typically not U.S.-sourced income.
