Tax Expat Benefits

Living or working outside the US is exciting and has definite benefits, but there are many things to consider as well. Taxes are one of the most important things to consider when living or working abroad. You will probably need to pay taxes to both the US and to the country where you live or work. Luckily, the US has taken measures to make sure that you do not have to pay redundant taxes with tax exemptions and credits, or even treaties. With proper knowledge and advisement, tax expat doesn't have to mean a headache or worse.

If an expat resides in a foreign country for at least 330 days of the tax year, they are qualified to claim the Foreign Earned Income Exclusion. As much as $90,000 can be excluded for an individual and if a spouse lives and works abroad it can be even greater. In order to claim this exclusion, taxes must be filed with the IRS and all the appropriate forms completed and turned in on time. This exclusion can take quite a load off tax expat that may be owed and is worth the time to look into for the qualifications (Tax Expat).
If the company worked for is a US company in overseas operations then, most of the time, Social Security and Medicare will be taken out. If the company is a foreign company, then these taxes will probably not be taken out. In most foreign companies, US employees will not be required to pay these taxes. But they may be required to pay into the social taxes of the country in which they are residing. Some US companies have made special arrangements with the IRS to not take out Social Security or Medicare. These employees will pay into the social taxes of the country in which they