Foreign Earned Income….Can I exclude from income money I earned abroad?
First, let me preface this article by warning all the readers that this is a complicated matter and you should ask your tax adviser. Whether you live in Los Angeles, West Hollywood, Sherman Oaks , Studio City or anywhere within the Los Angeles County area; Losangelescpa.org is a local Los Angeles tax advisor and we will look into your particular situation in further detail.
This article discusses ONLY the basics in regards to foreign income and your tax reporting requirements if any income was earned abroad.
As a permanent resident or a citizen of United States one must report all income earned/received worldwide. This includes any jobs you might have had abroad and also any investments income you have received from foreign investments.
This article specifically focuses on income you earned by “Working abroad”. If you are a U.S. citizen or a U.S. resident alien living in a foreign country, you are subject to the same U.S. income tax laws that apply to citizens and resident aliens living in the United States. However, depending on your situation your friendly Los Angeles tax preparer should be able to help you exclude a substantial amount of income earned from your United States tax return. The maximum exclusion amount has increased in 2011 to $92,900. If a taxpayer qualifies he can use Form 2555 to figure his/hers foreign earned income exclusion. Also, depending on the city where you lived and worked you might be eligible for a higher exclusion.
If you have any questions on this article or on whether you qualify for this type of exclusion; CALL US AT 323-528-1512 and we will be glad to go over your situation particulars with you.
Looking forward to hearing from you!
Your Friendly Losanglescpa.org Team.