2016 Foreign Earned Income Exclusion Amount

2016 Foreign Earned Income Exclusion Amount

The foreign earned-income exclusion amount under tax code will increase in 2016 to $101,300 from $100,800

U.S. citizens and residents who work abroad are able to exclude a certain amount of their foreign-earned income and a portion of their foreign housing expenses from their gross income for U.S. tax purposes.

In order to qualify you must meet either a physical presence test or a bona fide residence test.

Taxpayers may elect the Section 911 income and housing exclusions even if no foreign taxes were paid on their foreign earnings.

Regards
Thomas M Carden
Director American International Tax Advisers