Taxation for expatriates
With clients in over 60 countries, we are experts in the foreign tax credit & foreign earned income exclusion.
If you need assistance with either of these items, please contact us below & we will gauge applicability.
For the foreign-earned income exclusion, you must meet one of two tests below:
Bona fide resident test:
- Lived and established a residence in the country for the entire taxable year
Physical presence test:
- Must be physically present in the foreign country for at least 330 full days during the 12 month period
For the foreign tax credit, you are permitted to take a credit on your US tax for taxes paid to another jurisdiction.
In some cases, the IRS allows you to choose to use only the foreign tax credit rather than the foreign earned income exclusion.
These matters can be further complicated if there are rental properties, stock options, foreign bank accounts, etc.