Over 9 million Americans live outside of the United States. Sometimes, living outside of the United States can be advantageous on your taxes. Under the Foreign Earned Income Exclusion, taxpayers may be able to exclude income from their United States taxes.
The FEIE can make living and working abroad a tax-free experience.
Joining Kelly on this episode of the Taxgirl podcast is Allyson Lindsey, a managing partner at Bright Tax. Allyson has experience advising international clients with a wide variety of compliance issues, making her the perfect partner to talk about the FEIE. Kelly and Allyson break down the Foreign Earned Income Exclusion — from how someone can qualify and the potential tax savings all the way to finding and vetting a qualified tax professional capable of helping you utilize the FEIE.
Listen to Kelly and Allyson talk about the Foreign Earned Income Exclusion:
- What the Foreign Earned Income Exclusion actually covers
- How to determine if you qualify for the FEIE
- The physical presence test
- Can the FEIE be prorated?
- What happens if you haven’t met the 330-day threshold
- What you need to watch out for and when you need to start thinking about it
- How housing costs apply with the Foreign Earned Income Exclusion
- Do you have to prove you paid taxes in another country?
- Is there an increased risk of getting audited
- The stigma that people that travel abroad are rich
- The importance of talking with a tax professional before moving abroad
- The FBAR
- How can you find a tax professional experienced with the FEIE?
More about Kelly:
Kelly Phillips Erb created and hosts the Taxgirl podcast, your home for tax news, tax info, and tax policy. In each episode, she shares conversations about taxes, money, and the choices we make. Kelly is a tax attorney who works with taxpayers and tax practitioners like you every day. She helps folks out of tax jams, and hopefully, keeps others from getting into them.
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Kelly’s Website: Taxgirl
Bright Tax: Website