Americans living abroad with a noteworthy income source often get confused with the instructions and guidelines of tax preparation and end up paying double taxation to the US government. As the directives for filing US Taxes ForAmericans Abroad are not at all easy to understand; having an expert and professional attorney or a certified public accountant will be a great help for you.
|US taxes for Americans abroad|
Individuals, who hold credentials for permanent residency of the U.S. citizens and living in any foreign country with sources for foreign income – including those with dual citizenship and also the Green Card holders living abroad are obligatory to file tax preparation and pay income tax to the federal government of the United States. There is also a minimum required threshold for the taxpayers; according to which your taxation amount is decided.
However, there are some provisions, availing which can help you avoid the possible double US Taxes For Americans Abroad and those exclusions are mentioned below:
Exclusions For Tax Payers In The US
Foreign Earned Income Exclusion: This exclusion excludes a taxpayer USD 103,900 (as per the directives of 2018 taxes) from the total earned income from his/her foreign sources.
Tax Credit: Tax Credit Exclusion reduces excise on the remaining income on the basis of taxes paid to the foreign governments or to the government where the taxpayer is residing currently.
Foreign Housing Exclusion: This exclusion allows additional exclusions from the income of the taxpayer on the basis of some amounts compensated to cover the household expenses because of his/her living in a foreign country.