Foreign Earned Income: Form 2555 Exclusion

Qualifying U.S. citizens and residents working outside the U.S. may exclude a portion of their foreign earned income under Section 911. Also, qualifying individuals may elect to exclude an amount for housing from taxable income.

Tax advisers should carefully evaluate potential tax benefits from electing the foreign earned income and housing cost exclusions or deductions. Applying U.S. and foreign Social Security rules is particularly complex, especially concerning totalization agreements. Advisers must consider the initial election and analyze the realistic prospects of utilizing excess foreign tax credits.

Listen as our experienced panel explores filing Form 2555, Foreign Income Exclusion, including eligibility and applying for recently released relief for individuals affected by the pandemic.

I. Review of foreign earned income exclusion

II. Tax home test

III. Bona fide residence test

IV. Physical presence test

V. Housing cost exclusions or deductions

VI. Completing Form 2555

VII. Issues with foreign tax credits

VIII. Discussion of Form 114 FBAR and Form 8938 FATCA compliance

IX. Social Security and totalization agreements

The panel will review these and other key issues:

• Eligibility for the foreign earned income and housing exclusions
• Complying with requirements for housing cost exclusions and deductions
• Planning with foreign tax credits
• Comprehending Social Security totalization agreements

Learning Objectives

Upon completing this webinar, you will be able to:

• Determine eligibility for the foreign earned income and housing exclusions
• Identify foreign tax credits available
• Differentiate among the tax home test, bona fide residence test, and physical presence test
• Comprehend Social Security totalization agreements
• Verify that taxpayers need to file Forms 8938 and FBAR Form 114

• Field of Study: Taxes
• Level of Knowledge: Intermediate
• Advance Preparation: None
• Teaching Method: Seminar/Lecture
• Delivery Method: Group-Internet (via computer)
• Attendance Monitoring Method: Attendance is monitored electronically via a participant's PIN and through a series of attendance verification prompts displayed throughout the program
• Prerequisite:

  Three years+ business or public firm experience preparing complex tax forms and schedules, supervising other preparers or accountants. Specific knowledge and understanding of international taxation including residency determination, foreign entity classifications, application of treaty benefits, as well as GILTI, Subpart F, and the related Section 250 deductions.

  
  

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IRS Approved Provider

Strafford is an IRS-approved continuing education provider offering certified courses for Enrolled Agents (EA) and Tax Return Preparers (RTRP).