How to optimize the tax benefits with FEIE?
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How should U.S. taxpayers, working remotely or temporarily abroad, navigate the Foreign Earned Income Exclusion (FEIE) rules regarding physical presence and foreign tax home to ensure compliance while maximizing tax benefits?
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You are correct that if you're a U.S. taxpayer working remotely from another country, it is extremely important to constantly keep an eye on how many days you spend working there.
Additionally, you need to meticulously maintain great records of where you live, your travel dates, and all your foreign income. Why? This evidence is critical for passing the Physical Presence Test or proving you have a solid tax home outside the U.S.
To stay on the right side of the law while ensuring you take advantage of every tax break and avoid being taxed twice, you should absolutely consult a CPA who truly understands expat taxes!
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Honestly, the constant day-counting and paperwork involved in being a U.S. expat is starting to feel like a second job. How is everyone actually managing this without losing their minds? I want to stay compliant, but I’m tired of the constant stress. Also, for those who use an expat CPA — are there still 'hidden' mistakes I should be worried about that could trigger an audit? I don't want to assume I'm safe just because I’m paying a professional.