Preparing Form 2555 for Foreign Earned Income Exclusion Self-Study

Summary

A client whose tax home and earned income is in another country, may be subject to double taxation without careful planning. Double taxation occurs when a taxpayer pays both U.S. and foreign taxes on the same income. To mitigate potential double taxation, §911 provides a foreign earned income exclusion and a foreign housing deduction or exclusion to qualifying taxpayers. Form 2555, Foreign Earned Income, is used to calculate these exclusions. This comprehensive course explores the tax implications of working abroad and introduces the forms needed to prepare the return of a taxpayer earning income from foreign sources, including completing Form 2555.

Objectives

Upon completion of this course, you will be able to:

• Determine if a client qualifies for the foreign earned income exclusion
• Differentiate between the foreign housing deduction and exclusion
• Identify Social Security and self-employment issues that arise when taxpayers work abroad
• Identify how totalization agreements and tax treaties with other countries impact taxpayers
• Perform tax planning with the foreign earned income exclusion and the foreign tax credit
• Prepare Form 2555, Foreign Earned Income

Course Details

This course includes an e-book and exam questions to help you earn CPE. CPE is issued after the exam is successfully completed.