Does Online Income Count as US Income or EC Income?

If you are a USA citizen then all income is USA income.  There are special rules for foreign exclusions and tax credits and also for reporting foreign assets.

Generally you are considered to have engaged in business in whatever country or countries in which you accessed your online business.

The phrase "whatever country or countries you accessed your online business" is confusing to the layman and needs clarification.

In particular, the word "accessed" could be interpreted in multiple ways if not more clearly defined.

mugtech wrote:

If you are a USA citizen then all income is USA income.  There are special rules for foreign exclusions and tax credits and also for reporting foreign assets.

For the (USA) American abroad, the first $100,800 of earned income can be tax-free per the 2015 threshold, if qualified for the IRS's FEIE exclusion.  This is the amount, adjusted annually, that the IRS allows one to earn overseas before incurring any U.S. tax liability.

The fact that all his income may be "USA income" does not mean he has no tax liability or obligation in Ecuador if he resides in Ecuador.

"No U.S. tax accountant can help you figure out what to do in your new country of residence.  You need a local tax advisor...experienced at working with foreign residents, to help you determine your local tax liabilities and obligations.  (Sometimes) a local tax filing may be required even if no local tax is due."

source:  liveandinvestoverseas.com