Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: Moving abroad for a year Date: 7/23/1997 11:17 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
<<Unfortunately, the reverse is not true. The US *will* claim the right to tax your Swiss income, unless you meet the conditions of being abroad for more than X days in the year (I don't recall X exactly--you should ask in the US about this). Even if you meet these requirements, the US only grants you a tax deduction of $70,000 against your Swiss income, and they will want to tax anything above that.>>

Thanks for the Swiss info, Bradley.

I can't vouch for the Swiss side of things, but I can certainly confirm your above statement.

Uncle Sammy will look for taxes on any foreign earned income unless you can meet the provisions of the Foreign Earned Income Exclusion.

In generaly, to qualify for the FIE exclusion ($70k per person), you must pass either the Bonafide Residence Test (must be a resident for an uninterrupted period that includes an entire tax year), or the Physical Presence Test (must be physically present in a foreign country 330 full days during a period of 12 consecutive months).

For additional information on the Foreign Earned Income Exclusion, see IRS Publication 54. You can obtain Pub 54 by calling IRS at 1-800-TAX FORM. Or you can visit their web site by setting your browser to: http://www.irs.ustreas.gov

TMF Taxes
Roy
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

The Story Behind the Story
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement