Foreign Earned Income Exclusion

All American expats who meet the minimum income thresholds (currently around $10,000 – though this may rise to nearer $12,000 if and when the Trump Tax Reform Plan is passed – or just $400 for self-employment income) are required to file US taxes reporting their worldwide income, wherever in the world they live. The IRS […]

Moving abroad is the adventure of a lifetime, but if you have student loans it’s important to understand the consequences for expats. For example, it’s a good idea to set up autopay (some loan servicers even offer a small discount for this) to ensure that you don’t miss any payments, and also to ensure that […]

American expats are, unfortunately, still required to file US taxes from abroad. Thankfully though, there are several exclusions that reduce or in most cases eliminate their US tax liability. The foremost among these is the Foreign Earned Income Exclusion. Not owing US taxes doesn’t exempt expats from having to file a US tax return though, […]

The Bona Fide Residence Test allows Americans living abroad to claim the Foreign Earned Income Exclusion, as well as the Foreign Housing Exclusion or Deduction. Americans living abroad are still liable to file and pay US taxes, and the Foreign Earned Income Exclusion provides a way for Americans to exclude income earned while living abroad […]

All US citizens and green card holders have to file a US tax return and pay US tax, whether they live in the States or abroad, and wherever in the world their income is earned or paid. This can expose many expats living and working abroad to the possibility of paying taxes both in their […]

All Americans are required to file an annual federal income tax return if they earn over around $10,000 (or just $400 of self employment income), wherever in the world they live and whichever country their income originates in. Americans living abroad may also have further US filing requirements under FATCA and FBAR (more about these […]

Americans living abroad continue to have to file a US federal tax return and declare their worldwide income, and they may also be liable to pay US income tax on their worldwide income. One of the primary mechanisms expats can use to exclude their income earned abroad from US income tax liability is the Foreign […]

The Foreign Housing Exclusion allows American expats to deduct reasonable housing expenses from their taxable foreign earned income. The Exclusion is granted in conjunction with the Foreign Earned Income Exclusion, but neither are granted automatically: you have to apply for them and file form 2555 with your annual return. The Foreign Housing Exclusion is typically […]

What is it? The US is the only developed nation in the world to tax based on citizenship rather than residence. As such, US citizens (or green card holders) are liable to pay US income tax on their worldwide income wherever in the world they live. If you live abroad though, you will probably also […]

US citizens and green card holders who live and work outside the US may be able to exclude part or all of their foreign earned income (both wages and income from self-employment) from US tax using the Foreign Earned Income Exclusion (FEIE). To qualify for the FEIE, a person needs to both work and live […]