US Expats Can Exclude More Than $100K from Taxes Chuck Bolotin - TheStreet
go to original November 23, 2015

International Taxpayers-Foreign Earned Income Exclusion: Find out if you qualify for the foreign earned income exclusion. For more information go to www.IRS.gov and type international taxpayers in the search field. (IRSvideos)

Few people are not interested in legally reducing their taxes.

By living in a foreign country and meeting some other criteria, you could exclude up to $108,000 of earned income from your 2015 U.S. tax return. That can certainly be an advantage of being an expat.

The website Best Places In The World To Retire has collected more than 6,500 answers from expats to frequently asked questions about living abroad. These include cost of living, safety and healthcare.

Several expats said that they were using the Foreign Earned Income Exclusion to reduce their tax liability to Uncle Sam, and that the ability to do so was a contributing factor in their decision to move.

Alfonso Galindo, a businessman in Mexico who was born and raised in California, said that he knew individuals who were "fifty-fifty about moving to Mexico." He added that when they learned that "they could exclude over $100,000 in taxable earned income from their U.S. returns through the Foreign Earned Income Exclusion, they thought about how much more money that would put in their pocket, and when they combined that with the lower cost of living in Mexico even without the exclusion, that made all the difference."

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