Course Description: This is a basic level course designed to acquaint you with the principal rules applicable to foreign earned income and housing cost exclusions afforded under the Internal Revenue Code (I.R.C.). This course explores the concept of a foreign tax home, which foreign earned income is excludible, how the exclusion from foreign housing costs may be claimed, how the exclusions are elected, and collateral issues such as moving expenses and meals and lodging costs. 

 Course Level: Basic 

 Course Prerequisites: None 

 Delivery Method: Self-study

After completing this course you will: 

• be able to identify the amount that may be excluded from gross income; 
• be able to recognize the time periods during which the taxpayer must work overseas to qualify; 
• know the excludible housing cost amount; 
• understand the taxpayer requirements for the two exclusions; 
• be familiar with the nature of the income and the amount of foreign income excludible from gross income in any tax year; 
• understand the treatment of related expenses;know the rules applicable to the disallowance of the foreign tax credit; 
• know the general rules for exclusion of foreign housing costs; know how to calculate the housing cost amount; 
• be familiar with the rules governing two foreign households, and other issues relating to husband and wife; 
• be familiar with procedures for electing the exclusion; 
• know how to revoke and reelect the exclusion; know whether to elect the exclusion; 
• know the rules for filing a return when foreign status is doubtful; 
• be familiar with certain collateral issues that may arise, including: – moving expenses; – meals and lodging costs; – U.S. income taxes; – self-employment taxes; and – U.S. government employees issues.

CPE

4

CLE

N/A