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Daniel Bosler
That depends on whether you are looking for tax breaks or if you are trying to keep connection with friends and family.
In order to be eligible for Foreign Earned Income Exclusion, you must work out of the country at least 330 of any 365 period. If you qualify, you may exclude up to $100,500 from your income, plus a housing allowance, if you qualify. You need to keep in mind that this exclusion applies to the taxes owed on the first $100,500. Rather than subtract the $100,500 from your adjusted gross income and check the tax tables, your taxes will figured on your total income and then the taxes on $100,500 would be subtracted to arrive at your tax liability.
If you do not qualify for the income exclusion, if you pay taxes on your income in a foreign country, you would be eligible for foreign tax credit on your federal return.
Hope this helps. Dan Bosler, EA
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449 weeks ago
In order to be eligible for Foreign Earned Income Exclusion, you must work out of the country at least 330 of any 365 period. If you qualify, you may exclude up to $100,500 from your income, plus a housing allowance, if you qualify. You need to keep in mind that this exclusion applies to the taxes owed on the first $100,500. Rather than subtract the $100,500 from your adjusted gross income and check the tax tables, your taxes will figured on your total income and then the taxes on $100,500 would be subtracted to arrive at your tax liability.
If you do not qualify for the income exclusion, if you pay taxes on your income in a foreign country, you would be eligible for foreign tax credit on your federal return.
Hope this helps. Dan Bosler, EA