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December 15, 2019

US Expatriates May Be Eligible for Foreign Earned Income Exclusion Which increases for 2019

The foreign earned income exclusion has gone up for the 2019 tax year.   For the 2018 tax year, the maximum was $103,900. However, the Foreign Earned Income Exclusion 2019 maximum amount has risen to $105,900.  To be eligible to exclude this amount from your US tax return you must be a bonafide resident of a foreign country based on your physical presence for 330 days out of a 12 month fiscal year or be living and working in a foreign country for an entire calendar year.  The specific rules are set for in IRS publication 54.  

In additional to the foreign earned income exclusion an expat can exclude their housing costs so long as they exceeed a minimum amount  (see publication 54) and up to a maximum amount which may vary by country (see publication 54).

You also get a standard deduction of $24,400 if you file a joint return or $12,200 if you file as single. An additional $1,300 is added if you are aged.

We can help you reduce or save taxes you pay the US IRS.  Email us with your questions and help.  Visit our website at   We have been assisting US expatriates and US nonresidents living abroad with the US taxes for over 25 years.  Kauffman Nelson LLP, CPAs and attorney.

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