Where Do You Live?  IRS Announces 2021 Foreign Housing Cost Amounts

The Internal Revenue Service (IRS) just issued Notice 2021-18.  This is the geographical list that spells out adjustments to the foreign housing exclusion available for many US persons living abroad. These limitations are made on the basis of geographic differences in housing costs relative to housing costs in the United States.  The ability to deduct … Continue reading Where Do You Live?  IRS Announces 2021 Foreign Housing Cost Amounts

Americans Abroad: IRS Issues 2020 Form 2555 and Instructions Detailing COVID-19 Relief

Americans working abroad are usually eligible to exclude certain foreign earned income (wages, compensation for services) from US taxable income under the rules governing the Foreign Earned Income Exclusion (FEIE).  In addition they may be able to exclude certain amounts paid for foreign housing using the Foreign Housing Exclusion (FHE).  Both are governed by Internal … Continue reading Americans Abroad: IRS Issues 2020 Form 2555 and Instructions Detailing COVID-19 Relief

Section 911 FEIE: IRS COVID-19 Relief in Meeting the Bona Fide Residence or Physical Presence Test

Americans working abroad may be eligible to exclude certain foreign earned income (wages, compensation for services) from US taxable income under the rules governing the Foreign Earned Income Exclusion (FEIE).  In addition they may be able to exclude certain amounts paid for foreign housing using the Foreign Housing Exclusion (FHE).  Both of these benefits are … Continue reading Section 911 FEIE: IRS COVID-19 Relief in Meeting the Bona Fide Residence or Physical Presence Test

No FEIE/ Section 911 Exclusion – Stuck in the USA Due to COVID-19? Taxpayers With a US “Abode”

With tax filing time looming, US taxpayers abroad should take heed when claiming the Section 911 “Foreign Earned Income” and “Foreign Housing Exclusion” benefits (FEIE).  Two recent cases show how easy it is to lose the FEIE benefits granted to qualifying taxpayers living and working in a foreign country. (My blog post here explains the … Continue reading No FEIE/ Section 911 Exclusion – Stuck in the USA Due to COVID-19? Taxpayers With a US “Abode”

What is a “Bona Fide Resident” for FEIE?

The case of Hudson v. Commissioner, T.C. Memo. 2017-221 provides a valuable lesson from the US Tax Court on what it means to be a "bona fide resident" for purposes of the Section 911 foreign earned income exclusion (“FEIE”).  The court in Hudson held that a pilot working for Korean Air and living in a … Continue reading What is a “Bona Fide Resident” for FEIE?