Description of Bills (S. 408, S. 436, S. 598, and S. 867) Relating to Tax Treatment of Foreign Earned Income: Scheduled for a Hearing Before the Subcommittee on Taxation and Debt Management of the Committee on Finance on April 24, 1981

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U.S. Government Printing Office, 1981 - Income tax - 10 pages
 

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Page 7 - housing expenses means the reasonable expenses paid or incurred during the taxable year by or on behalf of the individual for housing for the individual (and, if they reside with him, for his spouse and dependents) in a foreign country. The term...
Page 3 - ... sec. 911) . In the case of individuals who had been bona fide residents of foreign countries for three years or more, the exclusion was increased to $25,000 of earned income. In addition, under the law prior to...
Page 5 - The report recommends that congress consider placing Americans working abroad on an income tax basis comparable with that of citizens of...
Page 4 - The cost-of-living element of the deduction is generally the amount by which the cost of living in the taxpayer's foreign tax home exceeds the cost of living in the highest cost metropolitan area in the continental United States (other than Alaska). The deduction is based on the spendable income of a person paid the salary of a Federal employee at a grade level GS-14, step 1, regardless of the taxpayer's actual income.
Page 3 - ... presence eligibility requirements for Americans working abroad to obtain the benefits of the deduction for excess foreign living costs or the exclusion for foreign earned income. The waiver generally would be available to Americans working abroad who could reasonably have been expected to meet those eligibility requirements, but who left the foreign country under conditions of war, civil unrest, or similar conditions which precluded the normal conduct of business.
Page 3 - ... for the excess costs of working overseas. (The basic eligibility requirements for the deduction are generally the same as for the prior earned income exclusion.) However, because the provisions of the 1978 Act were effective on January 1, 1978, and the Act did not become law until November 8, 1978, taxpayers were permitted to elect for 1978 to be taxed under the new provisions or under prior law (the exclusion as amended by the Tax Reform Act of 1976) so that the 1978 Act would not have any mandatory...
Page 3 - States citizens and residents are generally taxed by the United States on their worldwide income with the allowance of a foreign tax credit for foreign taxes paid. However, for years prior to...
Page 8 - States or any of its agencies) of their foreign earned income attributable to services performed during the period of foreign residence or presence.

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