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 [...]
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 [...]