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February 16, 2013

An Overlooked Expat Deduction? - The Foreign housing exclusion or deduction.

In addition to the foreign earned income exclusion, you can also claim an exclusion or a deduction from gross income for your housing amount if your tax home is in a foreign country and you qualify for the exclusions and deduction under either the bona fide residence test or the physical presence test.
The housing exclusion applies only to amounts considered paid for with employer-provided amounts, which includes any amounts paid to you or paid or incurred on your behalf by your employer that are taxable foreign earned income to you for the year (without regard to the foreign earned income exclusion). The housing deduction applies only to amounts paid for with self-employment earnings.
Read more about your expatriate and nonresident income tax benefits and rules at   We have  been preparing expatriate and US nonresident tax returns for over 30 years.

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