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Foreign Earned Income and Housing Exclusion

U.S. citizens and resident aliens are generally taxed on their worldwide income regardless of where the income is earned or received. A U.S. citizen who earns income in a foreign country may also be taxed on that income by a foreign host country, thus leading to double taxation. However, a number of tax provisions provide relief from this inequity, including the foreign tax credit and deduction, the foreign earned income exclusion, and the foreign housing cost exclusion. Based on a review of your prior year’s tax information, we feel it would be beneficial for you to meet with us to discuss tax planning regarding your foreign source income. As you may know, taxes paid to a foreign country or

Foreign Business Travel

Generally, taxpayers are entitled to deduct ordinary and necessary expenses paid or incurred while traveling away from home in their business, profession, or for-profit activity. If any part of the business travel is outside the United States, however, some of the deductions for the cost of getting to or from the destination may be limited. The determination of how much of the travel expenses are deductible depends partially on how much of the trip outside the United States was business related. If you travel outside the United States and spend your entire time on business activities, you may deduct all of the travel expenses you incurred getting to and from your business destination, as wel

How to Handle Travel Costs More Easily

Travel expenses are an expensive headache for your company. Besides the cost of the actual travel, you also must cope with budgeting for travel costs that vary from destination to destination, the administrative headache of tracking actual expenditures from employee-maintained records, paying directly for the expenses or providing employees with advances or reimbursements, and keeping track of which expenses are completely deductible (lodging and round-trip travel) and those that yield only a 50-percent deduction (meals while the employee is on travel status). Fortunately, we may be able to help you work out an alternative plan of action that puts strict limits on your travel expenses, encou

Child Tax Credit

To claim a child tax credit, your qualifying child must be under the age of 17 at the close of the tax year. The child tax credit is partially refundable for some taxpayers who have earned income below certain thresholds or at least three qualifying children. Because the child tax credit reduces the tax on income dollar-for-dollar, it is therefore, considerably more valuable than a tax deduction. The child tax credit is tied to the child's dependency exemption. A qualifying child for purposes of the child tax credit must also be the taxpayer's dependent. Generally, a qualifying child for the credit is someone who meets the following criteria: Is the child under age 17 at the end of the tax y