Working Outside the United States? You Can Potentially Exclude $105,900 from Federal Income Taxation

Working Outside the United States? You Can Potentially Exclude $105,900 from Federal Income Taxation

Tax Law
By Anthony Diosdi If you work and earn money outside the United States, Internal Revenue Code Section 911 may permit you to exclude $105,900 of foreign source income from federal income taxation. The purpose of Internal Revenue Code Section 911 is to mitigate the tax and other economic burdens on U.S. persons working abroad by providing for an exclusion from U.S. of up to a specified amount of foreign earned income and housing costs. Internal Revenue Code Section 911(a)(1) permits a U.S. citizen or U.S. residents (with limitations) who has his or her “tax home” in a foreign country and who meets either of two foreign residence-based eligibility requirements to elect to exclude income from federal income taxation. The amount that can be excluded is up to a stipulated amount…
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