If you are a US expat living in a foreign country, the US law requires you to file your US tax returns on the income that you earn abroad. Generally, US expats are allowed to benefit from the same tax deductions that they could have benefited from
US citizens, US Expats, US residents, and all US entities that are created under the laws of the US, are classified as US persons and are required to report their foreign bank accounts, if their combined threshold bypasses $10,000 at any time throughout
During your Expat Tax Preparation, your Tax home is a place where you are indefinitely involved in work.
An FBAR needs to be filed, as part of your Expatriate Tax Return, if you are an expat having a foreign account holding more than $10,000. It is a mandatory filing.
Normally if you are a US citizen working in a foreign country then you need to pay US tax on the foreign earned income and will need to file an Expatriate Tax Return.
The income threshold that is tax free when you are an expat, in 2014, is $95,100. This exclusion is only on earned income.<br>Other sources of income like capital gains, rent, interests , dividends and similar ones, not requiring personal efforts,
If you were working abroad but are now permanently retired, you can claim moving expenses under deductions scheme.<br>However, point to be noted here is that your former main job location and your former home, both must have been outside United States.
When you are an American citizen but residing in a foreign country there are certain deductions that you can make from your income when filing a US Expatriate Tax Return
So what is the bona fide Residence test and physical presence test that you have to pass to claim foreign income exclusion or a foreign housing exclusion, for your Expatriate Tax Return?<br>The bona fide residence test is not so simple to understand
