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If you're one of the different US people working and living outside of the US, you may have some anxiety about tax season. Living abroad means that you're subject to two sets of laws and 2 sets of tax codes. Avoiding paying taxes on the same earnings twice, you may claim the Foreign Earned Income Exclusion on your US taxes. It is a bulk exclusion that may help tremendously in case you qualify for it. Even semi permanent works may still qualify you for exclusion. You must be able to prove that you have been living abroad for a particular amount of time to qualify. Things you did not know about the foreign earned income exclusion

Foreign Earned Income Exclusion is for US people or even US resident aliens whose home country has an established tax treaty with the US. You must have been living in foreign country for 330 days out of a twelve month duration. Some consideration is given to your objectives and also the length of time you expect to be in the country. You have to apply for the exclusion by filling out IRS tax form 2555. Once it is filed, every case would be considered individually. The IRS will consider your problem mostly dependent on your answers on the form. Things you did not know about the foreign earned income exclusion

When you've qualified for the exclusion you should either file your taxes by the due date or file an amended return. Amended returns might be filed two to three years after the initial was filed. Once your taxes are filed with the Foreign Earned Income Exclusion, the IRS statute of limitations is moved to 3 years unless there is proof of fraud. As of 2010, the maximum exclusion was $91,500 for someone. In case your partner also qualifies for the exclusion, after that the amount doubles. all about the foreign earned income exclusion

Being eligible for the Foreign Earned Income Exclusion needs either the bona fide residence test or the physical presence test. The bona fide test needs that you prove that you have lived abroad for a minimum of one full tax year. The physical presence test needs that you live in a country for 330 days in a twelve month duration. That is regardless of the tax year and begins the day after you move into your residence in the foreign country. Travel outside the country must be limited to 35 days. Any your residence in a country must be of a permanent nature, no touring about the country or staying in not permanent residences.