U.S. citizens working abroad are generally taxed on their worldwide income, but if they have a tax home in a foreign country and meet specific requirements, they may be able to exclude certain housing costs from their gross income. The excludable amount is the excess of the year’s allowable housing expense over a base amount ($16,656 in 2018). However, the limitation is adjusted for higher cost geographic areas, relative to housing costs in the U.S. Here’s a list of high-cost areas just provided in IRS Notice 2018-33: https://bit.ly/2HI1KvT

By | 2018-05-21T16:56:03+00:00 May 9th, 2018|Federal Tax Posts|Comments Off on 04/24/2018