US expats living abroad face a number of tax challenges, perhaps the most potent of which is the potential for “double taxation” – i.e., taxation of your income in both the United States and your country of residence. In this blog, we explore the main tools that the US makes available for expats to avoid […]
Continuing the trend of recent cases, the Tax Court again disallowed the foreign earned income exclusion (“FEIE”) in the case of a contractor for the U.S. military who worked in Afghanistan during 2012 and 2013. While the law has changed to allow the foreign exclusion in the case of contractors supporting the U.S. Armed Forces […]
In a decision that continues the trend of the IRS and courts focusing on the foreign earned income exclusion, the Tax Court ruled against a State Department local hire civilian who claimed the exclusion and was then flagged by the IRS for an audit of the issue. Basics of the Foreign Earned Income Exclusion Provided […]
In a recent online update, the IRS reminded taxpayers that starting with the 2018 tax year, contractors or employees of contractors supporting the U.S. Armed Forces in designated combat zones will qualify for the foreign earned income exclusion (“FEIE”) even if their “abode” is considered to be in the United States while they are abroad. […]
In today’s age of “digital nomads,” the idea of working remotely overseas continues to grow in popularity. New programs, such as Remote Year, have further facilitated overseas commuting by organizing year-long trips for employees and freelancers to live in multiple cities abroad. Participants, for example, travel in groups to live in multiple cities throughout Europe, […]
In a decision that bucks the recent trend of taxpayer defeats, the Tax Court in Linde v. Commissioner (T.C. Memo 2017-180) ruled against the IRS in allowing a U.S. citizen helicopter pilot working in Iraq to claim the foreign earned income exclusion. The decision is notable both because of the unusual taxpayer-friendly outcome and because […]
One of the key messages we try to impart to U.S. expats is that just because you can utilize the foreign earned income exclusion (“FEIE”), does not mean that you do not have to timely file a tax return with the IRS. The exclusion may reduce or even eliminate the requirement to pay tax, but […]
Following the trend of the past several years, courts continue to review foreign earned income exclusion cases at a relatively high rate. In most of the recent cases, the courts have denied the FEIE claims on a number of different grounds. Recently, two more cases addressed the foreign earned income exclusion requirements. In one instance, […]
Following the trend of the past several years, the Tax Court continues to review foreign earned income exclusion cases at a relatively high rate. In most of the recent cases, the Tax Court has denied the FEIE claims on a number of different grounds. Recently, the Tax Court decided two cases involving taxpayers working in […]
We’ve blogged a number of times in the past about the foreign earned income exclusion (“FEIE”), because it is one of the main tax relief measures available to expats filing U.S. tax returns. Expats qualifying for the FEIE may be able to exclude all or part of their foreign salary or wages from their income […]
