US Expatriate Tax FactsUS Expatriate Tax Facts

What qualifies as foreign earned income? What is the physical presence test and the bona fide residence test? John Harvey CPA, MBT explains. Read more at Expat Exchange.

US citizens, US residents, and green card holders are exposed to US income tax on their worldwide income and are required to file an annual US tax return. If the taxpayer works abroad he/she may elect to exclude up to $91,500 (2010 tax year) from their gross income by meeting one of the two foreign earned income exclusion tests; Physical Presence test or Bona Fide Residence test. If either test is meet the taxpayer may also qualify to deduct part of their foreign housing expenses from their taxable income.

Are you eligible for Expatriate Tax Deductions.  Read more at Expat Exchange.  Please be aware we are not tax advisors or accountants nor are we giving advice.  We recommend contacting a professional tax advisor.