Question for the Money Doctors
Question submitted on Mar 28, 2014.
QuestionI have been living abroad for the last year but I am paid from a US based company. Do I get any tax breaks since I have been living out of the country for so long?
If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction.
If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is adjusted annually for inflation ($97,600 for 2013). In addition, you can exclude or deduct certain foreign housing amounts.
You may get a copy of Form 2555 and its instructions from www.irs.gov.
For additional information visit http://www.360financialliteracy.org/