Leaving the USA for a Work Assignment? Learn I.R.C. Section 911 Basics

Do you have U.S. employees working outside the United States? The general foreign income exclusion in I.R.C. § 911(a) allows qualified taxpayers to elect to exclude their foreign earned income up to an amount that is adjusted annually for inflation ($112,000 for 2022). Qualified taxpayers can also exclude from income, or deduct in specified cases, increased housing costs above what a hypothetical taxpayer would have to pay for U.S. housing. Rufus Rhoades, author of the Rhoades & Langer U.S. International Taxation and Tax Treaties treatise, tells us more in this video in our practice video series.

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Related Content 

• Leaving America: U.S. Tax Planning for U.S. Citizens Temporarily or Permanently Leaving the U.S.
  Plan for what happens if an employee leaves the United States on a temporary or a permanent basis while a U.S. citizen or permanent resident. Many employers apply tax equalization programs to keep their employees’ whole, so a foreign assignment doesn’t disadvantage them economically.

• What To Know About Filing US Taxes When Living Abroad
  Learn that, as a rough rule of thumb, the higher the foreign tax to which the earned income is subject, the less attractive is the Section 911 exclusion. IRS reports that only about one-quarter of U.S. taxpayers entitled to the exclusion actually take it.

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