Governments and tax authorities around the world are responding to globalization and our connected economy by pursuing tax revenues with more determination.
In general, U.S. citizens must pay income tax to the country in which they work while remaining subject to U.S. taxation. The U.S. is the only developed country that imposes taxes based upon citizenship and not on residence. This can result in double taxation for Americans and permanent residents who work abroad.
To mitigate this problem, the U.S. tax code allows some relief to U.S. taxpayers by allowing them to exclude some of their foreign earned income and housing costs OR to claim a credit for foreign income taxes.
We can assist you navigate through the various rules that affect taxpayers in the above situations. We can help you...
- Determine whether the income exclusion OR foreign tax credit will help you lower your taxes today.
- Obtain the proper documentation to meet the IRS's requirements to take the exclusion or credit.
- Review employer compensation packages as compensation and reimbursement of housing and moving costs are all taxed differently.
- Decide when and if it would make sense to revoke your exclusion election.
