You decided to leave the US to enjoy another culture, another country, and a new life. You think life is a lot better now. You have some money, but you know you need to work to get you moving forward with your travels. You decided to serve as a consultant or work certain jobs that will generate considerable pay. You filed all the papers and you are set. Are you also set to pay your US tax return? Do not worry, you can take advantage of the Foreign earned income exclusion if you feel that you qualify for it. It is important to be aware if you qualify for Foreign earned income exclusion so that you can maximize your income and generate the best results.
Understanding Foreign earned income exclusion

If the tax home of a citizen is a country outside the US, and you meet the test for bona fide residency as well as physical presence test, then you can take advantage of the Foreign earned income exclusion from the gross amount which is a limited amount of money that you earn from that job that you do in that country. The income must come from doing services in that specific country during that period where you are physically located or residing. As an employee of the US government, this US tax return benefit does not apply to you.
Deductions and credits

If you make a claim for Foreign earned income exclusion, you cannot claim for deductions and credits. It is an “either-or” situation. It is either you get a deduction or you get exclusion. For the purposes of the IRA, your excluded income cannot be considered compensation. This cannot also be used to figure the deductible contributions for retirement benefits. The exclusion income becomes part of the modified and adjusted income (gross).

Excludable amounts
Since 2009, the amount that can be excluded from your foreign income is around $91,400 and will raise based on inflation. The IRS will adjust the amount so expect that it has considerably gone up after 3 years.

Housing costs
An important aspect of the US tax return for expats would have to be the housing amount. If you live or are physically located in a foreign country, then you can request to have Foreign earned income exclusion for your housing costs. This is an excess of the allowable expenses that you can spend on housing per tax year on base amount. These allowable expenses include utilities, rent, property insurance, communication charges, and similar things. The base amount for housing cost is at 16%.

Deductions
These are ideal for those self-employed individuals whose housing costs are not covered by employers. You can remove the housing cost as you arrive to the adjusted gross income but it should not be more than the income that you earn for that tax year minus all exclusions for the income.
Learning about the US tax return for expats is very ideal to ensure that you get top notch results for your financial responsibilities.
Do you want to get foreign earned income exclusion http://www.artiopartners.com for your US tax return http://www.artiopartners.com ? As a citizen, it is your responsibility to know and benefit from such things. Our services can allow you to find out if you are qualified for exclusions so you can pay your taxes fair and square.