Foreign Earned Income: Form 2555 Exclusion Reporting and Other Tax Issues for Expat Workers (Currently Unavailable)

Author: Marc J Strohl

Avoid Pitfalls When Working with Expatriate Taxation Issues
Qualifying U.S. citizens and residents working outside the U.S. may exclude a portion of their foreign earned income under Code Sec. 911. In addition, these individuals may elect to exclude a housing cost amount from taxable income. However, tax advisors should carefully evaluate potential tax benefits derived from electing the foreign earned income and housing cost exclusions. Advisors must consider the initial election and analyze the realistic outcomes or possibilities of utilizing excess foreign tax credits.

Working abroad triggers other income tax-related issues, including travel and moving expenses, itemized deductions and tax treaty requirements. Applying U.S. and foreign Social Security rules is particularly complex, especially with respect to totalization agreements.

Join experienced practitioner Marc J. Strohl, CPA, as he explores the difficulties arising from tax preparation for Americans working abroad that often challenge even experienced tax professionals.

Publication Date: January 2021

Designed For
Tax and accounting professionals who work with expatriates and their employers on income taxation issues and return preparation.

Topics Covered

• U.S. Taxation System
• The U.S. Expats Three Options
• The FEIE
• Tax Home Test (THT)
• Bona Fide Residence Test (BFR)
• Physical Presence Test (PPT)
• IRC Sec 911” 'Foreign Country' Defined
• Foreign Housing Exclusion (HE) and Deduction (HD)
• Employed versus Self” Employed
• FTC
• FBAR Form 114
• FATCA Form 8938
• Immigration vs. Tax Law
• Other Tid Bits of Information

Learning Objectives

• Describe income tax reporting and planning issues relating to Americans working abroad, from both the employee's and employer's perspectives
• Identify the methods to avoid double taxation
• Describe which test requires taxpayers to have their 'Tax Home' in a foreign country for a full 12 fiscal month period
• Identify correct statements with respect to the Bona Fide Residence Test
• Identify correct statements regarding the Foreign Tax Credit
• Identify correct statements regarding the sale of a principal residence

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of federal income taxation concepts

Advance Preparation
None