Foreign Tax Credit, Foreign Income Exclusion, and FBAR

If you live or work outside of the United States, all income has to be reported if you are an American citizen or green card holder. However, there are credits in place to make sure you don’t pay taxes to both countries.

The foreign income exclusion (form 2555) works like the foreign tax credit, but has been used by government contractors in war zones to effectively eliminate taxation on the income they earn abroad. I have considerable experience in this area and would be happy to help you if this is the case.

FBAR is the filing with the Treasury Department where American citizens and green card holders report foreign holdings, usually bank accounts in other countries. I’d be happy to help with that as well.