What has IRS prepared for us this tax season?

What has IRS prepared for us this tax season?
As the new tax season has started, the IRS published new provisions for 2017, tax rates, tax rate schedules and tax tables with adjustments to the annual inflation. So, what’s new? Tax brackets. The tax rates will remain the same, but the thresholds for each rate will increase. Here are the new tax brackets. Rate ...

On my way to Portland, OR – and sourcing under the US-Canada tax treaty

On my way to Portland, OR - and sourcing under the US-Canada tax treaty
Hello from the Amtrak bus, This is Olivier Wagner from 1040 Abroad. I am going from Vancouver, BC Canada to Portland, OR United States. If you are going to Pioneer Nation, let me know, I’ll buy you a drink, also I’ll be in DCBKK (Dynamite Circle conference in Bangkok), same deal, let’s meet up. Nice bus ...

Working offshore for a foreign company in foreign waters, pay UK taxes, and from what I can gather, I’m not eligible for the FEIE

Hi, I saw an interesting situation described over on reddit. Here it goes: The taxpayer was a bona fide resident of the United Kingdom but was working on international waters (oil field). Question: How can he avoid dual taxation: Foreign Earned Income Exclusion, Foreign Tax Credit? Cool stuff. So, as discussed in Income earned on international ...

The importance of earned income

After posting First Year Abroad, I received the following message on Twitter @taxsamurai Perhaps you need to place emphasis that there are other types of income than “earned income” such as foreign pension. — JC Double Taxed (@JCDoubleTaxed) September 29, 2014   And yes, I have to admit that my post was targeted to US ...

First Year Abroad

If you just moved abroad, you probably have a lot of questions about how to deal with the tax implication it may have. The Foreign Earned Income Exclusion and Foreign Tax Paid Credit pages will give you a more complete explanation of some of the issues you need to know, but you will find below a quick summary of ...

Income earned on international waters 1

As we know, there are two main mechanisms available to US persons to avoid being taxed in the US (in the case of the foreign tax credit, while also paying taxes overseas): – The foreign tax credit (FTC) and – The foreign earned income exclusion (FEIE) The mechanics of the foreign tax credit require the ...