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Old 01-22-2016, 11:17 PM
  #26  
whalesurfer
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Joined APC: Feb 2013
Posts: 1,339
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Originally Posted by got2fly View Post
There is no news here. You can live overseas, but if you are employed in the USA there is no foreign earned income exemption because it is not foreign earned income! I lived and worked overseas and had the foreign earned income exemption...
..There is no mystery here. Just follow the rules. Turbotax basic or H&R Block basic software or will keep you out of trouble.
Read the post again. Yes, there's definitely news here and your situation had nothing to do with what the flight attendant was trying to achieve.

"...The second issue at hand is that the Supreme Court refused to hear the case of an United flight attendant, who is an American citizen and based in Hong Kong, who attempted to claim the foreign income exclusion for all of her income.."


She merely wanted the US to treat foreign income the way most of of the world does. The US is one of very few countries where - as long as you're a citizen - you have to pay US income taxes (above the exclusion) no matter what. ..of course, since that person lives in another country, often permanently, he or she also pays taxes there..

For example - let's say you were born in the US and as a child moved to Canada, have lived there your entire life, paid taxes there, got married there, are a permanent resident ("green card" holder) or even a citizen there and have no plans of ever moving to the US - as long as you have a US passport - you have to pay US income tax (above the exclusion).
That's what this flight attendant was trying to challenge. Most countries allow you to keep your citizenship and won't charge you taxes even if you choose to live somewhere else permanently as long as you don't use their benefits (health care, pension, etc.) you shouldn't have to surrender your US passport to avoid paying US taxes.

From the article below:
Unlike most countries, the U.S. taxes citizens on all income, no matter where it is earned or where they live..

http://money.cnn.com/2015/05/08/pf/t...orts-renounce/

Last edited by whalesurfer; 01-22-2016 at 11:29 PM.
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