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: December 2017

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

Topics Covered

• Understanding the foreign earned income exclusion
• Complying with requirements for housing cost exclusions
• Planning with foreign tax credits
• Making sense of complex tax treaties
• Comprehending Social Security totalization agreements

Learning Objectives

• Describe income tax reporting and planning issues relating to Americans working abroad, from both the employee's and employer's perspectives
• Recognize how to guide clients in complying with requirements for housing cost exclusions
• Identify how to perform tax planning with foreign tax credits
• Recognize how to handle Social Security totalization agreements
• Identify the foreign earned income exclusion amount for 2017
• Differentiate statements with respect to foreign earned income exclusion
• Describe what is considered a workday based upon purposes of determining U.S. versus foreign earned income
• Differentiate statements with respect to the bona fide residence test
• Recognize the which forms relate to information returns of a U.S. transferor of property to a foreign corporation
• Identify proper information relating to foreign earned income
• Assess local taxation based upon most countries worldwide
• Recognize a way an expat can avoid double taxation
• Describe characteristics of FEIE
• Identify physical presence test required taxpayers to maintain how many full days of presence abroad in a foreign country out of a 12-month period
• Recognize which of the following housing related tax considerations is used when the individual assignee is self-employed

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