If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction.
If you are a U.S. citizen or a resident alien of the United States and
you live abroad, you are taxed on your worldwide income. However, you
may qualify to exclude from income up to an amount of your foreign
earnings that is adjusted annually for inflation ($99,200 for 2014 and $100,800 for
2015). In addition, you can exclude or deduct certain foreign housing
amounts.
To claim the foreign earned income exclusion, the foreign housing
exclusion, or the foreign housing deduction, you must have foreign
earned income, your tax home must be in a
foreign country, and you must be one of the following:
- A U.S. citizen who is a bona fide resident of a
foreign country or countries for an uninterrupted period that includes
an entire tax year,
- A U.S. resident alien who is a citizen or national of a country with
which the United States has an income tax treaty in effect and who is a
bona fide resident of a foreign country or countries for an
uninterrupted period that includes an entire tax year, or
- A U.S. citizen or a U.S. resident alien who is
physically present in a foreign country or countries for at least 330
full days during any period of 12 consecutive months.
For more information, see:
Foreign
Earned Income Exclusion
Publication 54 - Tax
Guide for US Citizens Abroad
