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May 7, 2013

IRS Announces 2013 Foreign Earned Income Exclusion Amount and Foreign Housing exclusion amounts

The maximum foreign earned income exclusion that can be claimed for 2013 is $97,600. Remember if both you and your spouse live abroad and both work each of you gets to claim this offset against your respective foreign wages and self employment income.

The IRS new guidelines for the housing exclusion  or deduction for 2013 have also been released. This includes  foreign rent, utilities and maintenance expense that can be claimed in addition to the foreign earned income exclusion  has also been released. There is a minium amount of housing expenses that are not deductible is $15,616.  The maximum amount varies by country ( the charts shows amount before deducting the $15,616). Tokyo in the IRS's  opinion is now the most expensive city in the world since it has the highest maximum. of $117,100.  To see the Maximum amount allowed for your home country CLICK HERE.

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