Do you work in a foreign country?
If you do, Uncle Sam has some good news for you.
You see, if you know how to play the game correctly, you can reduce or eliminate U.S. income taxes on your foreign-sourced earned income.
How can you come out a winner? By using the “foreign tax credit” the right way.
We’ll show you how the foreign tax credit can save you big money when you read my new article titled Tax Tips: Use the Foreign Tax Credit to Minimize U.S. Taxes When You Work Abroad.
We’ll examine these four common scenarios:
Scenario #1: You don’t pay foreign income taxes. You’re lucky because this one’s easy. Simply elect the foreign earned-income exclusion to avoid U.S. taxes. We’ll tell you why when you read the full article.
Scenario #2: You pay more in foreign income taxes than you’d owe in U.S. taxes. This one’s also a no-brainer. Use the foreign tax credit. It generally wipes out your U.S. tax liability and that’s just for starters as you’ll learn when you read the full article.
Scenario #3: You pay less in foreign income taxes than you’d owe in U.S. There are three winning strategies available. The right one for you depends on your particular circumstances. We’ll help you choose wisely when you read the full article.
Scenario #4: You move to a new country and now the foreign earned-income exclusion isn’t saving you money. Sometimes the smart move is to revoke the foreign earned-income exclusion and only use the foreign tax credit. There are two ways to do this. We’ll tell you what they are and explain why revoking the foreign earned-income exclusion can make sense. All will be explained when you read the full article.