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Tax treaty

Level 3

Hello,

Individual earned income in a foreign country that does not have a tax treaty with the US (Serbia). Can this individual apply form 2555?

According to topic - Foreign Earned Income Exclusion:

  • A U.S. citizen who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year,
  • A U.S. resident alien who is a citizen or national of a country with which the United States has an income tax treaty in effect and who is a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year, or
  • A U.S. citizen or a U.S. resident alien who is physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months.

Since the individual lived and worked and Serbia the whole year he can exclude up to $107,600?

I had the impression that only when it comes to a foreign country that has a tax treaty with the states, form 2555 can be used. 

Thanks,

 

 

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2 Replies 2
Level 15

If they meet the physical presence test and their tax home is in a foreign country they can claim the foreign earned income exclusion.

There is no requirement that the country have an income tax treaty with thUS.


ex-AllStar
Level 3

Thanks a lot.

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