Tax on Foreign Income

More than foreign income tax exclusion

Of course, expatriates and international companies employing expatriates should always make the most of the tax incentives and advantages available through foreign income exclusion. In the U.S. all taxpayers must pay taxes on all of their global income. However, U.S. expatriates can file IRS Form 2555 to elect to exclude foreign earned income from their tax base if certain conditions are met. This amount fluctuates annually through cost of living adjustments with the base foreign income tax exemption for 2011 was $92,900.00. There are additional factors such as housing allowances and meals purchased by employers that can affect your foreign income tax obligations.

Understanding how foreign income is taxed in the U.S. can have an influence on your over tax liabilities and the credits you receive for these taxes can benefit expatriates and international companies alike. PIASCIK has expert international tax professionals dedicated to maximizing your tax savings by optimizing between multiple foreign deductions, the foreign income exclusion and foreign tax credits A few considerations to discuss with a foreign income tax professional before filing:

  • Bona fide residence test
  • Physical presence test
  • Tax treaty
  • Tests exemptions
  • Foreign housing deductions
  • Form 2555
  • Credits for foreign income tax
  • FBAR
  • Form 1116
  • Form 8833

Taking credit when it's due

Let our international tax professionals find you every available foreign tax credit. There are some credits that may qualify even with foreign tax exemption. Many expatriates overlook additional conditions that may reduce additional tax liabilities while still building credits that may be transferable to their home country. Conditions that can affect credit for foreign income taxes can include:

  • Totalization agreements
  • Payment form
  • Nature of foreign tax
  • Type of taxable base
  • Similarities in credits and taxes
  • Trading sanctions
  • Governing IRS codes
  • Additional regulations

These available foreign income tax specifications can have a drastic affect on your tax liabilities and the accumulation of earned credits. PIASCIK foreign income professionals are well versed in every venue of foreign income taxes with over 75 years of combined international tax law experience. Our highly educated international tax professionals are there to ensure you get the credits due to you.

Saving with professional expertise

You should always seek professional tax advice for current code and regulations. PIASCIK is a focused international tax firm with exceptional service and an economical alternative to larger tax firms. Our distinguished services have flat-rate fees with no hidden charges. In fact, PIASCIK is so confident we can help you; our initial consultation is absolutely free with no obligation from you. Contact our international tax professionals today about your overseas income taxes, IC-DISC matters or other international tax issues.