FEIE VS Foreign Tax Credit for US Expats...and Child Tax Credit tips!

All about the FEIE and the FTC for US American Expats Abroad. Brought to you by Nathalie Goldstein, IRS Enrolled Agent and CEO of MyExpatTaxes.
Nathalie clarifies what tax benefits are available to Americans Abroad. Answering questions like:
- Can I claim the Foreign Earned Income Exclusion, and how much can I claim?
- How can I use the Foreign Tax Credit?
- How can I be eligible for a refund using the Child Tax Credit?
- Can I use the FEIE and still contribute to an IRA?

[@omarz8390]

Thank you for the excellent video, I really appreciate it. This is my first experience filing taxes while living abroad. After watching, I understand that I won't be eligible for the child tax credit since I work in a country with zero taxes and will be utilizing the Foreign Earned Income Exclusion (FEIE).

[@MyExpatTaxes]

I'm so glad it helped! Yes, that is the one trick unfortunately. But I guess paying no taxes is not a bad trade off!

[@saidabdelkrim8441]

hello , Many thanks for all these clear and easy to understand informative videos, I moved my self oversea and I have a clear idea on the filling process, I have a question that I couldn't find an answer, when I was working in US, the US Social security and Medicare were taken form the paystub, now I am oversea, when filing the tax return, weather FTC or FEIE is used, however is Social security and Medicare due when you work oversea, please Nathalie, it will be great if you make a video about this topic thank

[@MyExpatTaxes]

Hi there! We are so glad to hear that the videos have been helpful for you. Thank you for your suggestions, we will do our best.

[@noahintara6619]

So great to find you. Thanks for this fantastic information, so clearly laid out. Is there anything in the US tax code that would reduce federal income taxes on US-derived W-2 income earned in dollars from a US company while living abroad full-time, working remotely, and coming back to the states about 12 weeks per year to visit prospects, customers, and the home office? We are going to sell our US residence, domicile in South Dakota (where, I understand, you can rent a mailbox and pay zero state income tax without owning or renting a primary residence, or, for that matter, any real estate). We are planning to buy abroad and school our two teenage kids there, so we will really be living there.

[@MyExpatTaxes]

Hi there! The Foreign Tax Credit could work if you're paying Foreign Taxes on your income. AND, if you're visiting customers & projects in the US, this would be considered US-sourced income and might require state tax returns to be filed (depending on the specific states we're talking about). Please feel free to reach out to our support team for more help, [e-mail]

[@FredQuinn]

If you are a retired US citizen, and a tax resident of Spain and your only income sources are US Social Security, a Private US pension and a US 401K distributions , all of which you are required to pay income tax to Spain on. Can you use the foreign Tax credit on your US taxes for these taxes paid to Spain to avoid double taxation? Or is there some other way to claim credit for taxes paid to Spain since this was US sourced income? Thank you.

[@MyExpatTaxes]

Yes, you can use the FTC (Foreign Tax Credit)

[@nucreation9833]

Hi 👋: What is the process to avoid paying California penalty for NOT having California Health Insurance coverage if you lived abroad the whole 2023 year ?

[@MyExpatTaxes]

Hi there, if you file with MyExpatTaxes, we are able to support CA returns for nonresidents and claim the health insurance exemption for expats.