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 2020

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
• Stacking
• Who Qualifies for the FEIE
• Tax Home Test (THT)
• Bona Fide Residence Test (BFR)
• Physical Presence Test (PPT)
• Foreign Country Defined
• PPT over BFR
• Foreign Housing Exclusion (HE) and Deduction (HD)
• Waiver of Time/U.S. Travel Restrictions
• Employed versus Self” Employed
• Moving Expenses
• FTC
• FBAR Form 114
• FATCA Form 8938
• Immigration vs. Tax Law
• Other Tidbits 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 how to guide clients in complying with requirements for housing cost exclusions
• Recognize how to perform tax planning with foreign tax credits
• Describe how to handle Social Security totalization agreements
• Describe methods to avoid double taxation
• Recognize which test requires taxpayers to have their 'Tax Home' in a foreign country for a full 12 fiscal month period
• Describe Bona Fide Residence Test
• Identify correct statements regarding Foreign Tax Credit
• Identify the 2020 amount for the Foreign Earned Income Exclusion
• Differentiate types of income included within earned income
• Recognize characteristics of a tax home

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