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Form 2555 (Yanks only)

Discussion in 'Tax issues' started by gungchang, 12 Apr 2015.

  1. gungchang

    gungchang Thread Starter Over the hill for at least the 6th time!

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    I'm assuming that all USA expats know this, but, if not:

    Form 2555 is what one uses to be able to claim the foreign tax exclusion on Form 1040.

    Income up to $80,000-ish is excluded from taxation.
     
  2. ramses

    ramses Well-Known Member

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    Last I checked, the figure is north of 95,000 USD. Not that it should make a difference. Unfortunately for folks who have benefits through work that include life insurance, FATCA makes things like your life insurance policy taxable as well. Two acts that have started to exact a toll on expats are FATCA and FBAR (intended to go after 'tax cheats' - named so for FatCats and FUBAR).

    I only bring this up because those of us (expat yanks) with holdings in taxable investment accounts in the US are still required to file (quarterly) tax statements and estimates. Also, if you take a distribution from an investment account that reports to the IRS, you are liable for the tax on the distribution. Finally, if you have a business interest in the US, you are required to file the appropriate tax forms regardless of where you stay. Lovely time of year to be an american.... :no::no:
     
  3. chuachinsoon

    chuachinsoon Well-Known Member

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    No wonder the IRS guy in the WWF was so unpopular.
     

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