Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 12-13-2011, 02:44 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,413
Blog Entries: 3
What is the Foreign Earned Income Exclusions and Housing Cost Allowance for 2011?

Effective 2011, U.S. citizens or Resident Aliens who live abroad can exclude up to $92,900 for the year beginning in 2011 of foreign-earned income and exclude or deduct certain foreign housing costs. This is an increase of $1,400 from the prior year $91,500).

The exclusion is limited to the smaller of $92,900 or the excess of the foreign earned income for the tax year over the foreign housing exclusion. This is computed separately for each spouse in the case of married taxpayers. Thus, if both spouses work abroad and each meets either the bona fide residence test and/or the physical presence test, then each can elect the foreign earned income exclusion. In effect, it is thus possible for a married couple to exclude up to $185,800 in 2011

Furthermore, the qualifying taxpayer in addition to the foreign earned income exclusion, "can also choose to exclude or deduct from gross income a certain amount of foreign housing costs." The housing amount is subject to limitations and generally limited to 30% of the maximum foreign earned income exclusion. For the tax year 2011, the housing cost limitation is $27,870 (30% × 92,900).

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.

Last edited by TaxGuru : 01-20-2012 at 02:18 PM.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
What are the adoption tax credits and exclusions for 2010 and 2011? TaxGuru Tax Credit 0 12-22-2010 11:24 AM
Foreign Earned Income & Housing Exclusions for 2008 TaxGuru For 2008 2 02-26-2010 12:44 PM
Foreign Earned Income Question JPMEMTP Income 0 07-16-2009 05:10 AM
foreign earned income help thestockman Income 1 04-12-2009 11:51 PM
How does one qualify for Foreign Earned Income Exclusion & Foreign Housing Exclusion? TaxGuru Miscellaneous 0 05-06-2008 04:42 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.