"David Jensen" <DJNews1[at]xxAssociates.net> wrote:

- quote -

Well it's called the Foreign EARNED Income exclusion.

--
David M. Woods, EA, ChFC, CLU
Woods Financial Services
Norwood, MA 02062
www.woods-financial.com

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David Jensen wrote:

- quote -

The name says it all: Foreign "Earned Income" Exclusion.

--
Alan
http://taxtopics.net

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Andy replies:

The exclusion applies only to "wage" income, and not at all
to investment income.... In addition, any income from Canada
is subject to tax by the United States. If it is "wage"
income, it might be subject to the exclusion, depending on
the present treaty with Canada.

You need a tax man who is familiar with international taxes
for expatriates. A U S Citizen is responsible for ALL income
to be taxed by the US , regardless of source, with a very
few exceptions.

You must also file a US return, regardless of the source, or
amount, to prove that you are complying with US tax law.

If, however, you don't ever intend to return to the US, and
have no property in the US, and have no possibility of
inheriting anything from the US, and have no claim for
"entitlements" such as US social security,....... you might
be able to get away with ignoring the US tax laws.......

Welcome to the real world...

Andy

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

"David Jensen" <DJNews1[at]xxAssociates.net> wrote

- quote -

The exclusion is for foreign ~earned~ income. Wages and
such.

And yes, only for that which is earned while you reside
abroad and the rules under Section 911(a) are met.

--
Paul A. Thomas, CPA
Athens, Georgia
taxman at negia.net

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"David Jensen" <DJNews1[at]xxAssociates.net> writes:

- quote -

The exclusion is the "foreign earned income exclusion". So
it only applies to *earned* income (wages, self-employment,
etc.) earned outside the US. It won't apply to any
investment income (stateside or overseas).

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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"David Jensen" <DJNews1[at]xxAssociates.net> writes:

- quote -

The exclusion is for earned income, not investment income.
If you were to convert investment income to earned income,
it would become subject to self-employment tax. Yikes!!!

Dick

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Let's say that you are living in Canada but have $75K
stateside investment income. Does the $80K IRS income
tax exclusion apply to that $75K or does it only apply
to income earned outside the US?

Thanks.

--
David Jensen
Change the xx in my email address to MJ for my real email
address. Thanks.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >