I spent hours reading through publication 54, publication 519, instructions for 2555, and was more confused than when I started. You somehow made it clear and easy to understand in 16 minutes. Thank you!
Great video! I have been abroad going on 2 years and I've been trying to get my 2021 earnings straightened out for a while now. I didn't have a knowledgeable tax guy and nobody has seemed to understand any of this that I speak with. Thanks for the clear info, I have a lot of work to do! lol
My name is Jorge and I am one of your listeners, nice to meet you. I am a CPA in Argentina and I have just realized that none of my clients have paid the additional 1% tax required in Miami-Dade County. The tax is called the "Homeless Tax" and is paid by those who have alcohol licenses. I understand that the tax is retroactive. Can you help me? I need to find the best way to handle this with the ultimate goal of reducing the penalties for all my clients.
Shouldn't there be taxes on the capital gains, interest and dividends? From what I've read, you pay taxes on the non excluded income using the total income ignoring the foreign exclusion. With total income over $100,000, he would not be in a tax free bracket.
Great video! I would like to know wether taxpayer needs to choose one of two forms to file their foreign ordinary income ? form 2555 or form 1116? or they can file both at the same time?
My understanding is that the physical presence test is not binary, but based on a formula. In other words, if you are outside of the United States for 320 days, you still qualify for some amount of the exclusion
Thank you. You are great to explain it so clearly step by step. I have one question. I had to go back to the USA because my son was sick and unemployed. While caring for him I needed to work to support him. I worked there for 3 months and I returned to my home overseas. Can I split up the foreign income exclusion since I was out to care for my sonand I did not intend to move back to the U.S.?
Excellent video, thank you! Quick question, would the employer eventually know the employee is living abroad if he applied for FEIE? Assuming the employee doesn’t fill form 673.
The FEIE is claimed on the taxpayers personal return, so the employer would not have access to that information. Most employee contracts will specify where the employee is permitted to work, because the physical location of the employee can have adverse tax consequences depending upon the jurisdiction.
Disagree on full days in the U.S. The date left/arrived is considered full day as well because it's not foreign days. Example. You leave the United States for France by air on June 10. You arrive in France at 9:00 a.m. on June 11. Your first full day of physical presence in France is June 12.
I have to say I really like your video. I can learn from it every time. This style of video is very very clear and logical: a comprehensible introduction first, and then an example and finally going through completely. But there is a question I have a little confused: assuming John made 200,000 and paid 30,000 tax in other county, should we exclude 108,700 first and use 30,000 tax he paid in other county as tax credit?
If you take the foreign earned income exclusion, you are still allowed to claim a foreign tax credit. However, the amount of the FTC is reduced. You must determine the amount of foreign tax allocable to the excluded income under the FEIE, and reduce your FTC by that amount. See Line 12 of the Form 1116 and the related Line 12 instructions within Form 1116.
@@JasonDKnott I have a question for my friend as well. She was out of the US for 325 days in 2022 but was out for the required 330 if the 12 month period were including Nov and Dec '21. Can she still get the FEIE if she's already filed 2021 taxes?
If a taxpayer lives and works abroad less than 330 days, such as 280 days, can he still choose to file 2555 form in order to exclude certain amount of his ordinary income?
Thank you Jason for sharing your knowlledge and going the informatio. I got lot of question, if you can help me or guide me through. I moved out US back on Feb 28 of 2016 and that year and year 2017 I work for a US company and move back to US end of 2017 and left again to foreign country on April 2018 and didn't work until the end t Of that year and work for a year and 8 months and all those years I didn't work full year and started working for US company December 2020 and still working for that compy and my question Can I still do taxes from 2 years back? What is the minimun amount of earning to do taxes? And I don't pay taxes here, I worm from home. Thank you for sharing. I US Citizen and I have my kids here too. Can I also include my kids?
First, thank you so much, excellent video! Quick one, I moved to Europe in Nov 2022, I am not planning on coming back to the US before the summer of 2024. I am suppose to submit my first 1040 in April for the 2023 tax year, can I submit a 2055 with it even though I have not spend a year abroad yet?
Great information. I have a question, I am AD Navy in Japan and my wife is Japanese. However we have an ITIN for her in order to get an American bank account/ tax filing. She works for a Japanese company paying Japanese taxes etc, nothing touched by the U.S. system. Is this the proper form to be filing out when we are filing jointly every year?
How do you get 5k on the Line 9 total when 95000 is negative and you are to add that negative number? I am trying to figure out my in come and don't know if I should put 0 or the negative amount for my total income after excluding my foreign income.
Is it applicable to peraon who is moving to USA (On Visa, citizen of other country) in middle of year like May month, and worked all time including the initially 4 months of the tax year in his home country only. Even paid all taxes in home country before moving to USA. is he still eligible for 2555 ?
What if people go on vacation to other countries like Europe, UAE etc for more than couple of months a year? Does a person still qualify for foreign earn income exclusion ?
If you filed 2555 for a US-Treaty country, such as Japan, are you going to file Form 8833 and Form 1116, just for the purpose of income tax withheld? Also, if you work in 2 different countries within the same year, your presence test would shift to one of these countries, or take a 1/1/-12/31 approach?
I have websites that generate income and am considering moving to Mexico. Can I use the exemption if I am answering phone calls and emails from Mexico?
I spent hours reading through publication 54, publication 519, instructions for 2555, and was more confused than when I started. You somehow made it clear and easy to understand in 16 minutes. Thank you!
This is the best video I can find for this confusing Form.
Thanks for the clear explanation and additional reference to Schedule1 and 1040
Thank you very much for the clear cut explication on the topic!
Glad it was helpful!
Thank you so much for going over this step by step. It's made a huge difference. You explain things very clearly and the example you use was perfect!
Great video! I have been abroad going on 2 years and I've been trying to get my 2021 earnings straightened out for a while now. I didn't have a knowledgeable tax guy and nobody has seemed to understand any of this that I speak with. Thanks for the clear info, I have a lot of work to do! lol
Glad to hear it was helpful. Thanks for watching!
My name is Jorge and I am one of your listeners, nice to meet you. I am a CPA in Argentina and I have just realized that none of my clients have paid the additional 1% tax required in Miami-Dade County. The tax is called the "Homeless Tax" and is paid by those who have alcohol licenses. I understand that the tax is retroactive. Can you help me? I need to find the best way to handle this with the ultimate goal of reducing the penalties for all my clients.
Shouldn't there be taxes on the capital gains, interest and dividends? From what I've read, you pay taxes on the non excluded income using the total income ignoring the foreign exclusion. With total income over $100,000, he would not be in a tax free bracket.
Great video! I would like to know wether taxpayer needs to choose one of two forms to file their foreign ordinary income ? form 2555 or form 1116? or they can file both at the same time?
My understanding is that the physical presence test is not binary, but based on a formula. In other words, if you are outside of the United States for 320 days, you still qualify for some amount of the exclusion
Thank you. You are great to explain it so clearly step by step. I have one question. I had to go back to the USA because my son was sick and unemployed. While caring for him I needed to work to support him. I worked there for 3 months and I returned to my home overseas. Can I split up the foreign income exclusion since I was out to care for my sonand I did not intend to move back to the U.S.?
It seems like you forgot to do Foreign Earned Income Tax Worksheet -- Line 16!
Excellent video, thank you! Quick question, would the employer eventually know the employee is living abroad if he applied for FEIE? Assuming the employee doesn’t fill form 673.
The FEIE is claimed on the taxpayers personal return, so the employer would not have access to that information. Most employee contracts will specify where the employee is permitted to work, because the physical location of the employee can have adverse tax consequences depending upon the jurisdiction.
Thankyou! Most appreciated.
that was really helpful! thanks
Glad it was helpful!
Disagree on full days in the U.S. The date left/arrived is considered full day as well because it's not foreign days. Example. You leave the United States for
France by air on June 10. You arrive in France at 9:00 a.m. on June 11. Your first full day of physical presence in France is June 12.
I have to say I really like your video. I can learn from it every time. This style of video is very very clear and logical: a comprehensible introduction first, and then an example and finally going through completely. But there is a question I have a little confused: assuming John made 200,000 and paid 30,000 tax in other county, should we exclude 108,700 first and use 30,000 tax he paid in other county as tax credit?
If you take the foreign earned income exclusion, you are still allowed to claim a foreign tax credit. However, the amount of the FTC is reduced. You must determine the amount of foreign tax allocable to the excluded income under the FEIE, and reduce your FTC by that amount. See Line 12 of the Form 1116 and the related Line 12 instructions within Form 1116.
You are fantastic!
Thank you for the support!
Thanks for the explanation, you made this so much easier
Thank you for the positive feedback. Glad to hear it was helpful!
@@JasonDKnott I have a question for my friend as well. She was out of the US for 325 days in 2022 but was out for the required 330 if the 12 month period were including Nov and Dec '21. Can she still get the FEIE if she's already filed 2021 taxes?
So what's the amount he saved on taxes on $95000? It would be nice if you included that number in the end.
If a taxpayer lives and works abroad less than 330 days, such as 280 days, can he still choose to file 2555 form in order to exclude certain amount of his ordinary income?
that was very helpful! Thank you so much.
Thank you for very useful video. I have searched high and low over the internet but cannot locate the “ Foreign Employer Conpensation” Form.
Question: If an expat has been abroad for only Sept- December they can't use the physical test but the Bona Fide still be accepted?
Thank you Jason for sharing your knowlledge and going the informatio. I got lot of question, if you can help me or guide me through. I moved out US back on Feb 28 of 2016 and that year and year 2017 I work for a US company and move back to US end of 2017 and left again to foreign country on April 2018 and didn't work until the end t
Of that year and work for a year and 8 months and all those years I didn't work full year and started working for US company December 2020 and still working for that compy and my question Can I still do taxes from 2 years back? What is the minimun amount of earning to do taxes? And I don't pay taxes here, I worm from home. Thank you for sharing. I US Citizen and I have my kids here too. Can I also include my kids?
Very helpful! Thanks so much
First, thank you so much, excellent video! Quick one, I moved to Europe in Nov 2022, I am not planning on coming back to the US before the summer of 2024. I am suppose to submit my first 1040 in April for the 2023 tax year, can I submit a 2055 with it even though I have not spend a year abroad yet?
Great information. I have a question, I am AD Navy in Japan and my wife is Japanese. However we have an ITIN for her in order to get an American bank account/ tax filing. She works for a Japanese company paying Japanese taxes etc, nothing touched by the U.S. system. Is this the proper form to be filing out when we are filing jointly every year?
How do you get 5k on the Line 9 total when 95000 is negative and you are to add that negative number? I am trying to figure out my in come and don't know if I should put 0 or the negative amount for my total income after excluding my foreign income.
Is it applicable to peraon who is moving to USA (On Visa, citizen of other country) in middle of year like May month, and worked all time including the initially 4 months of the tax year in his home country only. Even paid all taxes in home country before moving to USA. is he still eligible for 2555 ?
What if people go on vacation to other countries like Europe, UAE etc for more than couple of months a year? Does a person still qualify for foreign earn income exclusion ?
Income Earned from US Employment with US Employer but Working Remotely from home Abroad 365 days a tax year so still qualify for FEIE ?..
What if I was also paying taxes in the country I am working in?
If you filed 2555 for a US-Treaty country, such as Japan, are you going to file Form 8833 and Form 1116, just for the purpose of income tax withheld? Also, if you work in 2 different countries within the same year, your presence test would shift to one of these countries, or take a 1/1/-12/31 approach?
God bless you!
good day to you sir, i have a question. if you apply for Foreign tax exclusion do you still have to do it yearly?
I have websites that generate income and am considering moving to Mexico. Can I use the exemption if I am answering phone calls and emails from Mexico?
What is the form number of the last page, “foreign employer compensation “ information? Where can I find?
The FEC page is just a worksheet that was generated using our tax preparation software. It is not a preset form or schedule issued by the IRS
@@JasonDKnott thank you!
Do you report the income you list on the FEIE form on the 1040 form? I am confused and have found different answers