TORONTO - TelAve -- The U.S. is one of a few countries in the world operating on a citizenship based taxation basis, meaning that U.S. citizens are taxed on their worldwide income regardless of where they live.

While this is a clear disadvantage to U.S. citizens living overseas, many such U.S. citizens don't actually have U.S. tax owing due to several mechanism, one of which is the foreign tax credit, the other one is the Foreign Earned Income Exclusion (FEIE).

One advantage of the Foreign Earned Income Exclusion (FEIE) is that it doesn't actually require the taxpayer to have paid taxes to a foreign country.

There are two ways to qualify for the Foreign Earned Income Exclusion (FEIE):
- The Bona Fide Residence test: It would require you to be an actual resident of a foreign country or

More on TelAve News

• Always Ontime: Chaos City - Super Hero Graphic Novel with Neal Adams Cover Launches from Panopolis Metaverse
• New Hampshire Becomes the 15th State to Require Personal Finance as a Core Academic Subject
• Virtual Workplace Platform Developer REACH Expands Executive Team, Positioning the Company to Drive International Growth
• Health Advisory: Protecting Yourself and Others from Monkeypox
• Kindle FREE June 28-29: Powerful new memoir from Santa Molina-Marshall poised to help heal abuse victims through inspiring storytelling

- The physical presence test: It would require you to be in a foreign country for at least 330 days in any 12-month period.

As with many tax rules, the Foreign Earned Income Exclusion (FEIE) is more complex than the two-line summary above. Please check 1040 Abroad's authoritative guide on the Foreign Earned Income Exclusion (FEIE) guide using this link to know everything there is to know about the Foreign Earned Income Exclusion (FEIE).

1040 Abroad is a tax firm founded in 2012, consisting of a unique international team that is led by a U.S. expat.

Always having our client's best interests in mind, we work hard to make sure that U.S. expats become tax compliant and live their life abroad free of any hassle.