THE FOREIGN EARNED INCOME EXCLUSION
U.S. citizens and resident aliens who live and work outside of the United States may be eligible to exclude up to $87,600 of 2008 earned income from U.S. tax. The 2009 exclusion amount is $91,400.
Under Section 911 of the Internal Revenue Code, expatriate taxpayers who establish bona fide residence in a foreign country or who meet the requirements of what is called the physical presence test are eligible for the foreign earned income exclusion. To meet the physical presence test, a taxpayer must spend at least 330 days during any 365-day period working outside the
United States
.
Income eligible for the foreign earned income exclusion includes salary and wages, commissions, bonuses and net income from business for the self-employed.
To claim the foreign earned income exclusion, file Form 2555 with your U.S income tax return.
Lott, Vernon & Company, P.C. CPA's has helped many international clients file tax returns claiming the foreign earned income exclusion.
We have served clients in various countries including:
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Iraq |
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Germany |
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Afghanistan
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South Korea
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Dubai
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Japan
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Kuwait
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Saudi Arabia
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