2010 Foreign Earned Income Tax Exclusion
If you are a U.S. citizen or a resident alien who works and earns income abroad, you may qualify for a the 2010 foreign earned income tax exclusion on up to $91,500 of your income. The maximum amount of foreign earned income exclusion increased from $91,400 in 2009.
Foreign Housing And Lodging Deductions
In addition, you may also claim housing and lodging deductions for the period you live outside the country and perform work for your employer.If you earn foreign income from self-employment, you can qualify for deductions allowed for the cost of your meals and lodging. If you are eligible for the 2010 foreign earned income tax exclusion, you can use this credit to reduce your tax liability. However, you are still liable for self-employment tax.You must report the entire amount of the foreign earned income on your tax return. In order to claim the 2010 foreign earned income tax exclusion, you need to fill out Form 2555.