The source of income from personal services is generally the place where the services are performed. Therefore, if you are physically performing the services outside of the United States, the income would generally be considered foreign-sourced, even if your clients/employer are in the U.S.
As a U.S. citizen living abroad, you are still required to file a U.S. tax return and report your worldwide income, which includes both U.S. and foreign source income. However, if your income is considered foreign-sourced, you may be eligible to exclude a portion of your foreign-earned income from your U.S. income for tax purposes. This is known as the Foreign Earned Income Exclusion (FEIE).
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