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Type of Income to Which Exclusions Can Be Claimed  The exclusion for foreign earned income can only be imposed on earned

income resulting from the services as an employee or independent contractor. To the statement ‘earned income’ may include the income which is earned as salary, wages, professional fees, or any other amounts received as compensation for personal services.  Let’s be honest- have you aware been aware of exclusions? Well, that’s why the hiring the US Tax Services Hong Kong considered the ideal option among US taxpayer to redeem the right to applicable exclusions.  In other ways, self-employed income also qualifies the criteria set for the exclusions in the realm of foreign earned income, but this exclusion doesn’t reduce the employment tax- the mechanism by which selfemployed person becomes liable to pay his social security and Medicare taxes.

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How The Amount Of Granted Exclusions Affects The Overall Tax Calculation?

 You have computed your tax at the rate that would have applied;

including the amount of income earned in foreign countries and had not claimed the exclusion yet. In a simple sense, your federal income tax is calculated by first calculating the actual amount of income tax on your total income earning during the accounting year.  Once you have derived the amount of overall income earned during the year only then you are eligible to include the granted exclusion for the foreign earned income.  You can then subtract the amount of tax as calculated by the amount of foreign earned income which is excluded. The amount you get after the subtraction is your federal income tax liability. Visit us:-

Maximum Limit to Exclusion  The amount that a US taxpayer can exclude each

year is limited to actual income earned from other countries or your annual maximum dollar amount limit, whichever the amount is less.  For 2019, the maximum exclusion for foreign earned income is set 5,900 per taxpayer. The taxpayer can claim for exclusion by filing the IRS form 2555 or form 2555-EZ under the guidance of tax expert and avail the benefit of reduced income tax. Visit us:-

Contact Us  Address:-

1103-5 Allied Kajima Building, 138 Gloucester Road, Wanchai, Hong Kong  Postal code: 518023  HK: +852 8172 1040

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US tax specialist in Hong Kong aware you Exclusions of Foreign Earned Income  

US tax specialist in Hong Kong aware you Exclusions of Foreign Earned Income  

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