At this point in life, we all understand that as a U.S. citizen you must pay federal taxes on income earned worldwide, but there are some exclusions that are important to know about. The Foreign Earned Income Exclusion is for an exclusion (up to $107,000.00) for your income that you have earned during the tax year. To qualify for this exclusion, you must stay outside the country for 330 days of the year. Now, you must count these days very carefully and this is where an expat tax professional can be particularly helpful to you. They will know all the ins and outs of which days qualify as being outside the country or outside the U.S according to the IRS.
FILING FOREIGN TAXES
Additionally, you more than likely have filed taxes in whichever foreign county you have been residing in. It’s important to note that the taxes paid in a foreign country will also be given to you as a credit on your U.S. tax return.
We hope you found these quick tax tips helpful. Please give us a call if you have any questions.