Bona Fide Residence Test Errors

Five Common Errors Expats Make With the Bona Fide Residence Test

The Foreign Earned Income Exclusion (FEIE) is a money-saving deduction that many expats can qualify for. In order to do so, you have to use either the bona fide residence test or the physical presence test. The bona fide residence test usually seems straightforward at first glance. Unfortunately, like so many expat tax-related issues, it’s […]

Case Study Physical Presence Test

Case Study: Expat Who Didn’t Yet Qualify for the Physical Presence Test

US expats must file tax returns each year, regardless of where they live. Thankfully the IRS created certain credits, deductions, and exclusions to avoid dual taxation. But here’s the catch: you must qualify as an official US expat to take advantage of these! We recently wrote about the differences between the physical presence test and […]

Taxpayer Advocate Service Report Addresses Expat Issues

National Taxpayer Advocate’s Report to Congress Addresses Expat Issues

Recently, the National Taxpayer Advocate’s Report to Congress has been published and contains over nine hundred pages of findings, studies, and proposals regarding how the IRS can improve its taxation system. This year, the Taxpayer Advocate Service (TAS) has introduced a publication called “The Purple Book” with 50 legislation recommendations that seek to “strengthen taxpayer […]

Tax Implications of Natural Disasters and Crisis for US Expats

Tax Implications of Natural Disasters and Crisis for US Expats

With Hurricane Irma impacting some small Caribbean nations, American citizens residing and working may not be aware how natural disasters, displacements and evacuation – particularly one bringing them back home to the US – could affect their ability to claim expat tax benefits. Physical Presence and Income Exclusion When a natural disaster occurs in your country […]

Foreign Earned Income Exclusion and Bona Fide Residence Test

The Foreign Earned Income Exclusion and the Bona Fide Residence Test

There are several tax deductions, exclusions and credits that are unique to US expats, which is great news in order to avoid double taxation. However, there are certain eligibility requirements you must meet in order to take full advantage of these potentially big savings on your taxes, one of which is the Bona Fide Residence […]