IRS Tries to Make Life Easier for Expats

on Tuesday, 14 July 2015.

The IRS has released an International Tax Map.  Hopefully it will make answering your tax  questions easier. If you cannot find an answer contact us for a free consultation.
IRS International Tax Map 

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 Foreign Earned Income Exclusion 2013

You may be able to exclude up to $97,600 of your foreign earned income in 2013.

You cannot exclude more than the smaller of:
  • $97,600, or
  • Your foreign earned income for the tax year minus your foreign housing exclusion.
If both you and your spouse work abroad and each of you meets either the bona fide residence test or the physical presence test, you can each choose the foreign earned income exclusion. You do not both need to meet the same test. Together, you and your spouse can exclude as much as $195,200.

Foreign Housing Exclusion and Deduction 2013

In addition to the foreign earned income exclusion, you also can claim an exclusion or a deduction from gross income for your housing amount if your tax home is in a foreign country and you qualify for the exclusions and deduction under either the bona fide residence test or the physical presence test.

The housing exclusion applies only to amounts considered paid for with employer-provided amounts. The housing deduction applies only to amounts paid for with self-employment earnings.

Your housing amount is the total of your housing expenses for the year minus the base housing amount which depends on where you are living. See page 6 on Form 2555 INS .