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Foreign Earned Income Exclusion

posted May 4, 2014, 2:20 PM by Zaher Fallahi

If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction.

 

If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation ($91,500 for 2010, $92,900 for 2011, $95,100 for 2012, and $97,600 for 2013). In addition, you can exclude or deduct certain foreign housing amounts.

 

You may also be entitled to exclude from income the value of meals and lodging provided to you by your employer. Refer to Exclusion of Meals and

Lodging in  Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, and Publication 15-B, Employer's Tax Guide to Fringe Benefits for more information.

Requirements

Can I Claim the Exclusion or Deduction?

Tax Home In A Foreign Country

Bona Fide Resident test

Physical Presence Test

Exceptions to Tests

Figuring The Exclusion

Choosing The Exclusion

Revocation

Which Form to File

Foreign Housing Exclusion or Deduction

Individual Retirement Arrangements

Extension to Claim Foreign Earned Income Exclusion

Application of Foreign Earned Income Exclusion and the Combat Zone Exclusion to Civilian Contractors Working in Combat Zones (PDF)

 

If you are a US citizen or Resident Alien living abroad, you may be eligible for Foreign Earned Income Exclusion. For assistance with your tax return preparation, the IRS representation and disclosing your unreported foreign bank accounts, you may contact Zaher Fallahi, Attorney At Law, CPA, at (310) 719-1040 (Los Angeles) or (714) 546-4272 (Orange County), or e-mail to taxattorney@zfcpa.com

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