The IRS reminds us under Tax Tip 2023-36 that American taxpayers that they must report and pay US income tax on their worldwide income, and can use the Foreign Earned Income Exclusion found on Form 2555 and the Foreign Tax Credit found on Form 1116 to reduce or eliminate their US income tax. Further to […]
Terrific discussion on the responsibilities of US persons to file tax returns including worldwide income, US persons filing deadlines, Large Gift Disclosure requirements to US persons from non US persons, US income tax treaty Savings Clause issues and the use of Totalization or Social Security agreements. U.S. persons (citizens and permanent residents) whose financial matters […]
Under IRC Sec 911(d)(4)- Waiver of Time Requirements- The IRS allows for under extraordinary circumstances both the BFR and PPT minimum time requirements to be waived if you must leave a foreign country due to war, civil unrest or similar adverse conditions. The IRS publishes a list of the countries that qualify for this […]
As first reported on April 27. 2020 in light of the Covid-19 epidemic the IRS released Revenue Procedure (Rev Proc) 2020-27. Rev Proc 2020-27 Affects U.S. persons living and working outside the U.S. Rev Proc 2020-27 invokes IRC Sec 911(d)(4)- Waiver of Time Requirements- with respect to the PPT and BFR tests deeming the Covid-19 […]
In light of the Covoid-19 epidemic the IRS released Revenue Procedure (Rev Proc) 2020-20 and 2020-27. Rev Proc 2020-20 Affects Foreign Nationals living and working in the U.S. and Rev Proc 2020-27 Affects U.S. persons living and working outside the U.S. Rev Proc 2020-20 allows foreign nationals trapped in the United States as a result […]
While the TCJA of 2017 eliminated the Schedule A deduction for Foreign Real Estate taxes, Foreign Real Estate taxes form part of the Qualified Foreign Housing expenses that qualify for the Housing Exclusion if employed or Housing Deduction if self-employed? But you first need to qualify under IRC Sec 911. While the cap on the […]
Founder at Protax Consulting Services, Marc J Strohl CPA, has just revealed essential information that U.S. expatriates need to consider when seeking a U.S. international assignment specialist. For more information please visit Protax Consulting Services, Inc. (“Protax”). All United States (“U.S.”) persons are taxable on their worldwide income. The U.S. uses the U.S. dollar as the
US income tax laws can be very difficult to understand and they often change year to year. US expatriate tax laws tend to be even more complicated and many US expatriates find the laws difficult to understand, never mind their CPA’s and tax attorneys! Our professionals at Protax Consulting Services Inc (“Protax”) have compiled a […]
As per IRS IR-2018-173 it seems under the Bipartisan Budget Act of 2018, enacted in February the Tax Home requirement was changed to make Combat Zone Contract workers supporting US Armed Forces qualify for the FEIE, but the real issue is will they qualify under the BFR or Bona Fide Resident Test or will they […]
Sometimes even less than a full day in a foreign country can count toward the at least 330 days. Although section 911(d)(1)(B) states that an aggregate of 330 full days of physical presence in a foreign country or countries is required, under Reg. Sec. 1.911-2(d)(2) An individual who has been present in a foreign country […]
