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Simple English definitions for legal terms

foreign-earned-income exclusion

Read a random definition: first taker

A quick definition of foreign-earned-income exclusion:

The foreign-earned-income exclusion is a rule that says people who earn money outside of the United States don't have to pay taxes on a certain amount of that money. They can choose to use this rule or a different one called the foreign tax credit. A tax credit is when the government takes money off of the amount of taxes you owe, instead of just taking it off of your income. There are other tax credits too, like one for people who take care of children or disabled family members, and one for low-income workers with kids. The foreign tax credit is important because it helps people who earn money in other countries avoid being taxed twice.

A more thorough explanation:

The Foreign-Earned-Income Exclusion is a provision in the Internal Revenue Code that allows nonresident taxpayers to exclude a limited amount of income earned outside the United States from taxation. This means that if you earn money while living and working abroad, you may not have to pay taxes on a portion of that income.

For example, if you are a U.S. citizen working in Japan and earn $100,000 in a year, you may be able to exclude up to $107,600 of that income from U.S. taxation in 2020. This exclusion amount is adjusted annually for inflation.

It's important to note that you must elect between the Foreign-Earned-Income Exclusion and the Foreign Tax Credit, which is another way to reduce your U.S. tax liability on foreign income. You cannot claim both.

Overall, the Foreign-Earned-Income Exclusion is designed to help U.S. citizens and residents who work abroad avoid double taxation and reduce their overall tax burden.

foreign draft | foreigner

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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