Get IRS 2555-EZ 2016

The foreign earned income exclusion is available only for income earned for services performed in a foreign country, and is claimed on IRS Form 2555 or 2555-EZ. The maximum foreign earned income exclusion is indexed annually for inflation; for 2015, it was $100,800 per person.

The limit on housing expenses is generally 30% of the maximum foreign earned income exclusion, but it may vary depending upon the location in which you incur housing expenses. The limit on housing expenses is computed using the worksheet on page 3 of the Instructions for Form 2555.

The U.S. government has increased the Foreign Earned Income Exclusion for 2017 to $102,100, up from $101,300 in 2016. You can attribute this big time increase of the Foreign Earned Income Exclusion for 2017 to the robust U.S. economy. That's because the FEIE is indexed annually for inflation.

You must work and reside outside the U.S. to qualify, and you must meet either the bona fide resident or physical presence test. If you do, you're eligible to exclude up to $105,900 in foreign earned income in the 2019 tax year. The amount of the exclusion often increases each year because it's indexed for inflation.

Multiply the FEIE by 16%. This is your base amount that you must exceed in order to claim the Foreign Housing Exclusion. The amount of your qualified foreign housing expenses over the base amount are then compared to the limits set for your location.

The foreign housing exclusion and deduction is an allowance for taxpayers who live and work in a foreign country to exclude any amount that their employer allocates to them to cover costs related to housing. ... The foreign housing exclusion or deduction is computed in parts VI, VIII, and IX of Form 2555.

As a U.S. citizen or a resident alien of the United States, you are taxed on your worldwide income. However, if you live and work abroad, you may qualify to exclude foreign earned income and to exclude or deduct certain foreign housing amounts.

You must work and reside outside the U.S. to qualify, and you must meet either the bona fide resident or physical presence test. If you do, you're eligible to exclude up to $105,900 in foreign earned income in the 2019 tax year. The amount of the exclusion often increases each year because it's indexed for inflation.

The foreign earned income exclusion is elected on IRS tax Form 2555. ... You have paid foreign taxes on foreign earned income. You have foreign earned income if you receive wages through employment or compensation through self-employment for services you perform in a foreign country.

U.S. citizens and resident aliens earning over a certain amount of income from foreign sources may have to pay income taxes on the foreign income. You must pay US taxes on income you earned abroad in the same way you pay taxes on income you earned in the United States. ... You are working for a U.S. employer.

Generally, you report your foreign income where you normally report your U.S. income on your tax return. Earned income (wages) is reported on line 7 of Form 1040; interest and dividend income is reported on Schedule B; income from rental properties is reported on Schedule E, etc.

It must be used to claim the foreign housing exclusion or deduction. In some circumstances you can use Form 2555-EZ to claim the foreign earned income exclusion (see below). You must attach Form 2555 to your Form 1040 or 1040X if you claim the foreign housing exclusion or the foreign housing deduction.

You must work and reside outside the U.S. to qualify, and you must meet either the bona fide resident or physical presence test. If you do, you're eligible to exclude up to $105,900 in foreign earned income in the 2019 tax year.

The foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction are based on foreign earned income. ... Earned income is pay for personal services performed, such as wages, salaries, or professional fees. The list that follows classifies many types of income into three categories.

Foreign Earned Income Exclusion 2019 Updates For the 2018 tax year, the maximum was $103,900. However, the Foreign Earned Income Exclusion 2019 maximum amount has risen to $105,900. That means that the first $105,900 of your foreign earned income can be excluded from taxation.