RJ has been employed as a consular agent since 2003. As a foreign resident, he should qualify for the Foreign Earned Income Exclusion (FEIE) even though he does not report or pay taxes to the foreign country wherein he resides. To be sure, he consulted with IRS agents in Paris who told him that he [...]
Any self-employed American expatriate can qualify for the Foreign Earned Income Exclusion. Unlike an employed expat, however, a multitude of complex issues arise concerning what can be deductible against foreign income. Consider tax home versus main home. Suppose you provide a consulting service from your main home in your foreign country of residence, but your [...]
Residents of foreign countries, including American expatriates, are often required to report and pay taxes on world-wide income. A resident is anyone who has been physically present for 183 days. So even though foreign earnings up to the $87,500 foreign earned income exclusion (FEIE) are excluded from US taxation, most foreign countries will tax those [...]
Qualifying for the Foreign Earned Income Exclusion (FEIE) is relatively simple. First, your tax home must be in a foreign country through a qualifying residency period. Your tax home is where you are indefinitely engaged as an employee or self-employed person. Second, you must have had foreign earned income: salary, self-employment, and/or employer-provided meals, lodging or [...]
In determining whether to file a tax return, the Foreign Earned Income Exclusion does not count. Although for 2007, $87,500 in foreign earned income can be excluded from taxation by the exclusion, the income earned in a foreign country is still counted against your Filing Status. Suppose you are married and earned $80,000 abroad. This income would be excluded from [...]
A 2007 U.S. tax return must be filed if your world-wide gross income exceeds your Standard Deduction and Exemption amount(s) according to your filing status:
Single $8,750
65 or older 10,050
Head of Household 11,250
65 or older 12,550
Qualifying widow(er) 14,100
65 or older 15,150
Married filing jointly 17,500
One Spouse 65 or older 18,550
Both Spouses 65 [...]