tag:blogger.com,1999:blog-6747929661464411700.post810084405817339829..comments2023-03-23T07:14:38.482-04:00Comments on The Super Tax Genius: Foreign Earned Income Exclusion - WARNINGS!Super Tax Geniushttp://www.blogger.com/profile/11781778562290959626noreply@blogger.comBlogger23125tag:blogger.com,1999:blog-6747929661464411700.post-27332710266682804482016-04-17T09:12:44.013-04:002016-04-17T09:12:44.013-04:00That is not an answer I can give via blog comments...That is not an answer I can give via blog comments. I can say she meets the presence test days requirement, but I can't say if she meets the other requirements. You should seek a tax pros assistants since its not as cut and dried as purple say. You should also read my other posts on the subject.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-64452538979122432592016-04-17T09:12:39.205-04:002016-04-17T09:12:39.205-04:00That is not an answer I can give via blog comments...That is not an answer I can give via blog comments. I can say she meets the presence test days requirement, but I can't say if she meets the other requirements. You should seek a tax pros assistants since its not as cut and dried as purple say. You should also read my other posts on the subject.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-36137095544114181822016-04-15T17:26:01.843-04:002016-04-15T17:26:01.843-04:00My daughter was in London for 366 days from 8-15-1...My daughter was in London for 366 days from 8-15-14 to 8-16-15, she earned $7600, is the entire amount excluded under the foreign Tax Exclusion being she lived there for over 330 days consecutively?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-18665206914153355112015-12-08T06:22:40.362-05:002015-12-08T06:22:40.362-05:00This comment has been removed by a blog administrator.Tax Debt Reliefhttps://www.blogger.com/profile/00487531014203685573noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-64790001538230469732014-06-30T21:12:16.733-04:002014-06-30T21:12:16.733-04:00That would not be true. Sorry.That would not be true. Sorry.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-19675635111196598352014-06-30T10:16:14.060-04:002014-06-30T10:16:14.060-04:00I thought I had read somewhere that if you earned ...I thought I had read somewhere that if you earned foreign income is under a certain amount you can stay in the US for more than the 35 days... something like 55. Did I dream this or is it something you've heard about? Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-35432702431242566662014-04-06T09:16:12.985-04:002014-04-06T09:16:12.985-04:00Let me preface by saying that I am not an expert o...Let me preface by saying that I am not an expert on oil field workers, but, for US taxes there are no special carve outs, but they might be subject to a number of deductions if they meet the requirements. If they pay taxes to a foreign country, they could get a foreign tax credit. If their locations vary and are temporary in nature, they might be eligible for the usual travel expenses away from tax home. I would seek out an expert in this particular area, but be wary of scam artists who claim some "special loophole."Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-53132595018712672002014-04-05T22:22:42.002-04:002014-04-05T22:22:42.002-04:00Since foreign oil field workers-- 28 days out, 28 ...Since foreign oil field workers-- 28 days out, 28 days back in U.S.-- apparently aren't eligible for either exclusion, are there any special exemptions, deductions or credits available for their foreign wages?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-43487124378278961952014-04-05T20:12:06.998-04:002014-04-05T20:12:06.998-04:00It did, the maximum exclusion was $80,000. You sh...It did, the maximum exclusion was $80,000. You should be aware that the IRS has been getting sticky about the tax home part, so your client should be prepared to demonstrate stronger ties to Afghanistan than the US while over there.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-35167433792476509672014-04-05T15:10:16.337-04:002014-04-05T15:10:16.337-04:00A client received a bill from the IRS for 19,000 f...A client received a bill from the IRS for 19,000 for 2003. Do you know if the <br />Foreign income exclusion existed in 2003? He worked for a private contractor<br />in Afghanistan and lived there full time. Thank you.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-28963985174958252442013-10-10T09:49:01.258-04:002013-10-10T09:49:01.258-04:00"You were a bona fide resident of Singapore f..."You were a bona fide resident of Singapore from March 1, 2010, through September 14, 2012. On September 15, 2012, you returned to the United States. Since you were a bona fide resident of a foreign country for all of 2011, you were also a bona fide resident of a foreign country from March 1, 2010, through the<br />end of 2010 and from January 1, 2012, through September 14, 2012."<br /><br />Hi,<br /><br />Included above is an example given from publication 54. According to the example, you are considered Bonda Fide for the entire 2010, but when you file the tax return in April 2011 how are you qualified for that since at that time you haven't stayed for an entire tax year. Or do you have to wait until 2012 to establish the Bonda Fide (after including the entire 2011), and then go back and be qualified and claim the exclusion for 2010. Please advice. thanks!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-3799920692721863982013-04-14T11:57:22.234-04:002013-04-14T11:57:22.234-04:00Thank you for explaining this in more detail and s...Thank you for explaining this in more detail and simplistically. It is not easy to find hard facts on working in the offshore world and especially the tax implications associated with being in different parts of the World during any time of the year.<br />Also, it is difficult to nail down specific documentation from the IRS/State Revenue services or other agency for what taxes should be paid while working on the Outer Continental Shelf of the U.S. Or, are there any tax benefits for oilfield workers while working on a foreign flagged vessel on the OCS. I thought maybe the OCSLA could help.<br /><br />Thank again!Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-49874703930079095382013-04-14T09:29:51.619-04:002013-04-14T09:29:51.619-04:00The bona fide residence test does not use exact da...The bona fide residence test does not use exact day counting to establish. It takes a more holistic approach than the presence test. Essentially, your home/residence needs to be in a foreign country. The IRS will look at your actions more than your words to determine this. If you maintain a home in the foreign country, work a permanent job there, and return to the US primarily for visitation/temporary jobs with the intention of returning to your "home" in the foreign country, you can continue to use the bona fide residence basis for the exclusion. Maintaining home and family in the US is a detracting factor (though not necessarily disqualifying.) The automatically qualifying once established is not technically true, but establishing a bona fide residence in a foreign country, and maintaining it for 6 years does carry a lot of weight. It really depends on the nature of your work and the reasons you spend in the US.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-32757306988288838162013-04-14T08:22:40.079-04:002013-04-14T08:22:40.079-04:00I was previously told/led to believe that once you...I was previously told/led to believe that once you have established the bonafide residence test and have received the foreign earned income exclusion, for myself this has been true for the past 6 years, then you will be granted the exclusion unless you put forth in writing to the IRS that this is no longer true.<br />Last year I worked 278 days overseas.<br />Is this correct, perhaps I did not make it clear?<br /><br />ThanksAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-3037513420660935042013-04-09T01:18:14.223-04:002013-04-09T01:18:14.223-04:00BTW, I do appreciate your comment and the link and...BTW, I do appreciate your comment and the link and have added a reference to it in the writeup.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-52946859571469684902013-04-09T01:12:22.830-04:002013-04-09T01:12:22.830-04:00I understand your point, and, while true, the Bona...I understand your point, and, while true, the Bona Fide resident test has more restrictive qualifications than the presence test in that it requires a bona fide residence that covers at least a calender year. While the specific number of days become less important, the length of time becomes more restrictive. Since the point of my post was to warn of pitfalls of the exclusion, vice specify the exact rules, I felt that I didn't need to cover the bona fide residence test to make my point.Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-89034570789592146532013-04-08T13:53:06.407-04:002013-04-08T13:53:06.407-04:00The General Rules To qualify for the foreign earne...The General Rules To qualify for the foreign earned income exclusion, a U.S. citizen or resident alien must have a tax home in a foreign country and income received for working in a foreign country, otherwise known as foreign earned income. The taxpayer must also meet one of two tests: the bona fide residence test or the physical presence test.<br />http://www.irs.gov/uac/Five-Facts-about-the-Foreign-Earned-Income-ExclusionAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-64911370251752048292013-04-08T13:45:50.339-04:002013-04-08T13:45:50.339-04:00Hi TSTG:
Please amend your above statement: "...Hi TSTG:<br />Please amend your above statement: "Even if you and your employer set you up for qualification, you still, at a minimum, have to spend 330 out of a 365 day period overseas"<br />This is not true, according to the IRS rules. You may also qualify by being a "bona-fide resident" of a foreign country. Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-57646069932990631142013-01-28T07:55:41.502-05:002013-01-28T07:55:41.502-05:00Foreign Income is treated just like any other inco...Foreign Income is treated just like any other income by Financial Aid even if is taxed by the foreign country. Here is a copy of the relevant instruction: <br /><br />Foreign income<br />Income earned in a foreign country is treated in the same way as income earned in the U.S. Convert all figures to U.S. dollars, using the exchange rate in effect on the day you complete the FAFSA. Your parents can find information on current exchange rates at<br />www.federalreserve.gov/releases/h10/current.<br />Your parents should also include the value of any taxes paid to the foreign government in the “U.S. income tax paid” line item. (If the income earned in the foreign country was not taxed by the central government of that country and was not subject to the foreign income exclusion based on filing an IRS Form 2555 or 2555EZ, the income should be reported as untaxed income in Question 92(i).<br />In many cases, if your parents file a return with the IRS for a year in which foreign income was earned, a portion of the foreign income can be excluded on IRS Form 2555 for U.S. tax purposes. The figure reported on line 45 of Form 2555 (or line 18 of Form 2555EZ) should not be reported in Question 92(i).Super Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-38910470577098229582013-01-28T03:57:28.750-05:002013-01-28T03:57:28.750-05:00One of my kids will be heading to college in a yea...One of my kids will be heading to college in a year and half. How can I show on the US income tax that the Foreign Earned Income or the amount that is excluded is also taxed at foreign source? My concern is that financial aid review boards may look at the whole untaxed amount of Foregin Earned Exclusion amount as the "available" income toward family contribution but in fact it is also taxed at the source. <br /><br />Allen Yihttps://www.blogger.com/profile/03124126617227003264noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-72938520185520304412013-01-28T03:50:12.305-05:002013-01-28T03:50:12.305-05:00This comment has been removed by the author.Allen Yihttps://www.blogger.com/profile/03124126617227003264noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-26266795185973199532012-11-15T08:55:02.347-05:002012-11-15T08:55:02.347-05:00This wouldn't be a Foreign Earned Income Exclu...This wouldn't be a Foreign Earned Income Exclusion issue. The income is fully taxable in the US (we tax worldwide income.) I am assuming he is a US citizen or resident. He would then use Form 1116 to take the Foreign Tax CREDIT to reduce US taxes by the amounts he paid to India (with limitations.)<br />Feel free to contact me with questions: taxadvisor@email.comSuper Tax Geniushttps://www.blogger.com/profile/11781778562290959626noreply@blogger.comtag:blogger.com,1999:blog-6747929661464411700.post-88359580222057746872012-11-14T20:10:39.530-05:002012-11-14T20:10:39.530-05:00This blog is very helpful.
My friend needs a clea...This blog is very helpful.<br />My friend needs a clear clarification on foreign earned income. He has some interest income and rental income (totally Rs. 3.50 lakhs or about $7000 only FROM iNDIA) Hope this will not be added as a fOREIGN EARNED INCOME> Foreign earned income covers only Salary and wages earned outside US, Is that right?JOYShttps://www.blogger.com/profile/15617547190423518125noreply@blogger.com