Foreign Housing Exclusion Amounts for High-Cost Areas Rise Slightly

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Adjustments to the amounts that U.S. workers abroad may claim in 2013 under the foreign housing expense exclusion in high-cost areas rose slightly from the previous year, the Internal Revenue Service said May 1 in Notice 2011-31.
Tax code Section 911 provides an exclusion from gross income for individuals who live in geographic regions where the costs of housing differ from housing costs in the United States. IRS computes the “housing cost amount” based on an individual's housing expenses for a taxable year under Section 911(c)(2) and provides a 16 percent exclusion for bona fide residency or physical presence under Section 911(c)(1).
According to the notice, for 2013, the general limitation for housing expenses is $29,280 ($97,600 × 0.30), up from $28,530 ($95,100 × 0.30) in 2012.
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