Tax Issues Affecting Overseas Contractors

 

Foreign Earned Tax Exclusion for American Overseas Contractors

One of the incentives for overseas contractors is the potential for significant tax savings. Overseasjobsource takes the mystery out of the IRS Foreign Earned Tax Exclusion and explains how you qualify. Many overseas employers use tax equalization to ensure tax equity among multi-national employees. Overseasjobsource explains tax equalization in clear, easy-to-understand terms.

 

Supporting Your Overseas Job Search in So Many Ways!

If you're looking for an overseas job, planning your overseas move or need information on the medical, legal and financial issues affecting overseas contractors, Overseasjobsource can help. Our articles were developed exclusively for overseas contractors. Click on the Exclusive Content box and see how we'll make you an expert!

 

Tax Exclusions Available to American Overseas Contractors

Under certain circumstances, Americans overseas contractors are eligible for a sizable tax exclusion on their overseas earnings. The IRS's Foreign Earned Income Exclusion has existed since the 1920's. We describe your potential savings and how to qualify...  more>

 

Option 1 - The IRS's Physical Presence Test

The Physical Presence Test is the most common method used to qualify for the IRS's Foreign-earned Tax Exclusion. To qualify you must be physically present in an overseas country (or countries) for more than 330 full days in a given year...  more>

 

Option 2 - The IRS's Bona Fide Residence Test

To qualify as a Bona Fide Resident you must reside (establish a bona fide residence) in a foreign country or countries for an uninterrupted period that includes an entire tax year. However, bona fide resident status is not automatically acquired solely by...  more>

 

How Tax Equalization Plans Affect Your Overseas Compensation

Employers frequently have a hard time explaining tax equalization plans. It can look like your employer is taxing your earnings, even though you qualify for the Foreign-earned Tax Exclusion. We'll explain tax equalization in easy-to-understand terms...  more>

 

Useful IRS Forms and Publications for Overseas Contract Jobs

Tax information provided by Overseasjobsource is intended to serve as a general overview for U.S. citizens with overseas contract jobs. The IRS Tax Code for Foreign Earned Income contains authoritative, specific information on numerous...  more>