How to qualify for the Physical Presence Test to use Foreign Earned Income Exclusion

How to qualify for the Physical Presence Test to use Foreign Earned Income Exclusion
U.S. expats can claim the Foreign Earned Income Exclusion to reduce taxable income. There are few requirements such as you should have foreign earned income, your tax home must be in a foreign country, and one must qualify for one of the two tests, either Bona Fide Residence or the Physical Presence Test. Last week we ...

Foreign Earned Income Exclusion vs. Foreign Tax Credit: which one is better? 2

Foreign Earned Income Exclusion vs. Foreign Tax Credit: which one is better?
We are often asked if it’s better to use Foreign Earned Income Exclusion or Foreign Tax Credit when it comes to US expat taxes. Yet you always need to remember that each case is different and while you personally may benefit from using FEIE, then your fellow expat may have better outcome utilizing FTC. Today ...

Top 7 Myths about U.S. expat taxes

Top 7 Myths about U.S. expat taxes
It’s easy to misunderstand the tax laws and struggle to sort out truth about U.S. international taxation because of its’ complexity. All those terms, conditions and special rules make it difficult to recognize what you need to do to be fully tax compliant as a U.S. expat. Today we want to puncture 7 common myths ...

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 ...