In Part I and Part II of this series, I introduced you to the  Foreign Earned Income Exclusion and Housing Exclusion and Deduction,  a list of definitions, the "mechanics" of the exclusions and deduction , explained how they reduce the income tax liability of qualified taxpayers, and discussed IRS Form 2555-EZ. Now for the heart of it all -- employing the earned income exclusion and the housing exclusions/deductions, and completing and filing Form 2555. The same caveats of not being all-inclusive and being current as of the date of writing, as explained earlier in the other parts of the article, still apply. If you have a personal … [Read more...]

In Part I of this series, I introduced you to a tax saving strategy that is very relevant to living in the Philippines - to the entrepreneurs and the wage or salary workers alike - Foreign Earned Income Exclusion and Housing Exclusion and Deduction. Additionally, I presented the basic requirements for qualifying to use these exclusions and deduction.  I also exposed you to the definitions of various terms used by the Internal Revenue Service (IRS) in explaining and calculating these exclusions and deduction. We'll continue our series by repeating the basic qualifications and providing you with the "mechanics" for claiming these benefits.   … [Read more...]

In an earlier article, I mentioned a topic that needs an article of its own – the Foreign Earned Income Exclusion and Housing Exclusion and Deduction.  It’s very relevant to living in the Philippines – particularly to hard working residents and entrepreneurs. It’s a legal method promulgated by the Internal Revenue Service (IRS) to reduce your taxable income and, consequently, your tax liability. This article is not all-inclusive.  As with other elements of tax calculations, your particular situation may affect your eligibility or benefits.  The discussion will cover the basics, and give you an idea of how these exclusions and … [Read more...]

I’ve been receiving a lot of tax questions lately.  Many deal with living in the Philippines and Fil-Am relationships.  I thought I might share some of them with you. This article is not an all-inclusive Frequently Asked Questions (FAQ) piece.  It’ll cover just a few questions that pop up from time to time, centered on a single topic.  After all, there’s a limit to boredom! If there is positive response to this article, others may follow.  Each would cover a single tax topic that would interest you and possibly answer your questions.  The fate of future tax-related articles is in your hands, dear readers. Today, for our first … [Read more...]