Foreign Earned Income Exclusion

Foreign Earned Income Exclusion,

What Does Foreign Earned Income Exclusion Mean?

Meaning of Foreign Earned Income Exclusion: Exemption from foreign earned income prevents double taxation excluding US tax revenue. The United States taxes its worldwide income. However, if you are an American immigrant, you will have to pay two taxes on this income. Income received abroad is subject to foreign tax and may be subject to IRS tax.

  • By excluding foreign-earned income, U.S. taxpayers can avoid double taxation on any part of their foreign income.
  • To be eligible for credit, you must be a U.S. citizen who has resided in good faith in one or more foreign countries for an indefinite period, including the entire fiscal year.
  • Foreign nationals who are citizens of this country with whom the United States has a double tax treaty.

Literal Meanings of Foreign Earned Income Exclusion

Foreign:

Meanings of Foreign:
  1. From a country or language other than your own, from, or their feature.

Sentences of Foreign
  1. Foreign language

  2. I think it's very strange for you

Synonyms of Foreign

far off, curious, distant, peculiar, unknown, alien, outlandish, remote, external, far flung, overseas, queer, unfamiliar, weird, odd, funny, exotic, unheard of, outside, bizarre, strange

Earned:

Meanings of Earned:
  1. Receive (money) for work or services.

Sentences of Earned
  1. I earn £ 10 an hour at the store.

Synonyms of Earned

be paid, receive a salary of, take home, take home earnings of, gross

Income:

Meanings of Income:
  1. Money received regularly for work or investment.

Sentences of Income
  1. Have a good house and a decent income.

Synonyms of Income

earnings, stipend, remuneration, wages, salary, emolument, pay

Exclusion:

Meanings of Exclusion:
  1. The act or condition of an exception or exceptions.

Sentences of Exclusion
  1. The drug addict was expelled from the army

Synonyms of Exclusion

banning, prohibition, ban, keeping out, debarment, embargo, barring, disbarring, debarring