{"id":9040,"date":"2023-02-12T09:07:01","date_gmt":"2023-02-12T09:07:01","guid":{"rendered":"https:\/\/internationalschoolcommunity.com\/blog\/?p=9040"},"modified":"2023-02-12T09:11:33","modified_gmt":"2023-02-12T09:11:33","slug":"filing-u-s-taxes-from-abroad-ftc-vs-feie-promo-rate-with-tietax","status":"publish","type":"post","link":"https:\/\/internationalschoolcommunity.com\/blog\/filing-u-s-taxes-from-abroad-ftc-vs-feie-promo-rate-with-tietax\/","title":{"rendered":"Filing U.S. Taxes from Abroad: FTC vs. FEIE (+ Promo Rate with TieTax)"},"content":{"rendered":"\n

International School employers often promote overseas postings with the promise of \u2018tax-free\u2019 income. For U.S. teachers working abroad, this can be a bit deceptive. U.S. international school teachers are required to file a tax return reporting all income from all sources if the taxpayer\u2019s income exceeds the filing threshold. However, the Foreign Earned Income Exclusion and the Foreign Tax Credit help to avoid double taxation and in many cases may result in no tax being due when filing your U.S. tax return.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The Foreign Earned Income Exclusion or FEIE\nallows the taxpayer to exclude up to a given amount of earned income from\nincome taxes; however, there are a few items to keep in mind. First, this only\napplies to earned income \u2013 the income you earn from your job as an employee or\nthe income you generate from self-employment while living abroad. Second, this\nonly applies to income tax. If you owe Social Security taxes on self-employment\nincome, you must still pay that. Social Security or self-employment tax cannot\nbe excluded using either the FEIE or form 1116 the Foreign Tax Credit.<\/p>\n\n\n\n

To claim the FEIE you must first qualify as an overseas resident. This means that either you were in the United States for no more than 35 days during any 365-day period or qualify as a bona fide overseas resident. Assuming you meet one of these requirements, you must then calculate the portion of the exclusion for which you qualify. If you were an overseas resident or a bona fide resident for the entire tax year, you qualify for the entire amount. If you moved overseas during the tax year or moved back to the United States during the tax year then you qualify for a percentage based on your qualifying days of overseas residency. Form 2555 accurately completed and included with a timely filed tax return allows the taxpayer to claim the FEIE.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

The Foreign Tax Credit provides another\nmeans of avoiding double taxation. This credit allows you to apply income taxes\npaid to your host country against the income tax owed to the United States on\nthe same income. This requires the filing of form 1116 with your annual tax\nreturn. Again, this only applies to income tax and this credit can only be\napplied to income earned while you were physically present overseas. If you\nwork for a foreign company while residing in the United States, the Foreign Tax\nCredit is not permitted.<\/p>\n\n\n\n

If your income exceeds the FEIE and you pay income tax to your host country, you may be able to apply any taxes allocable to the difference to your US tax bill by using Form 1116 in addition to the FEIE. For example, if you earned $150K with an FEIE allowance of 108,700 that would leave $30,700 of taxable income. The income tax paid to your host country on that $30,700.00 could be applied to your US tax obligations on a pro-rata basis.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

While at first glance it may seem better to utilize the FEIE, especially if your income falls below the exclusion limit, there are times when the FTC may prove more advantageous. Using the FEIE automatically excludes you from certain child tax credits. Also, by exempting all of your earned income you become ineligible for IRA\/Roth contributions. There may be state considerations as well with one method or the other so a holistic view is needed. <\/p>\n\n\n\n

The important thing to remember is that\nonce you stop using the FEIE you must wait 5 tax years before you are eligible\nto use it again. You cannot switch back and forth each year. Working with a tax\npreparer who is experienced in helping US expats will enable you to make the\ndecision that is best for you right now and help you to determine if and when a\nchange may be beneficial.<\/p>\n\n\n\n

If this sounds overwhelming, we can help set up and file!\u00a0 Just reach out to us at www.tietax.com<\/a> or Stephen.Boush@tietax.com<\/a> and reference code:<\/p>\n\n\n\n

ICS2022<\/strong> <\/p>\n\n\n\n

for preferred rates.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n","protected":false},"excerpt":{"rendered":"

International School employers often promote overseas postings with the promise of \u2018tax-free\u2019 income. For U.S. teachers working abroad, this can be a bit deceptive. U.S. international school teachers are required to file a tax return reporting all income from all sources if the taxpayer\u2019s income exceeds the filing threshold. However, the Foreign Earned Income Exclusion […]<\/p>\n","protected":false},"author":1,"featured_media":9044,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[11],"tags":[2971,2970,2973,2969,2976,2975],"class_list":["post-9040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-great-resource","tag-expat-community","tag-residing-overseas","tag-tax-advice","tag-tax-filing","tag-tax-preperation","tag-tietax"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2023\/02\/income-tax-gf841f8290_1280.jpg?fit=1280%2C853&ssl=1","jetpack_shortlink":"https:\/\/wp.me\/p2flVT-2lO","jetpack_sharing_enabled":true,"jetpack_likes_enabled":true,"jetpack-related-posts":[{"id":11338,"url":"https:\/\/internationalschoolcommunity.com\/blog\/isc-members-get-50-off-your-first-year-with-tietax-expats-helping-expats-navigate-u-s-taxes-roth-ira-rules\/","url_meta":{"origin":9040,"position":0},"title":"ISC Members: Get $50 Off Your First Year with TieTax \u2013 Expats Helping Expats Navigate U.S. Taxes & Roth IRA Rules!","author":"ISCommunity","date":"March 4, 2025","format":false,"excerpt":"For U.S. international school teachers, navigating tax obligations while living abroad can be overwhelming. Many assume working overseas means they no longer have to file U.S. taxes\u2014that\u2019s a costly myth. You risk penalties, missed deductions, and financial stress without expert guidance. This is why ISC has partnered with TieTax to\u2026","rel":"","context":"In "Great Link"","block_context":{"text":"Great Link","link":"https:\/\/internationalschoolcommunity.com\/blog\/category\/great-link\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2022\/04\/income-tax-g14b773be7_1280.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2022\/04\/income-tax-g14b773be7_1280.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2022\/04\/income-tax-g14b773be7_1280.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2022\/04\/income-tax-g14b773be7_1280.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2022\/04\/income-tax-g14b773be7_1280.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":11572,"url":"https:\/\/internationalschoolcommunity.com\/blog\/why-expat-teachers-should-look-beyond-just-filing-their-taxes\/","url_meta":{"origin":9040,"position":1},"title":"Why U.S. Expat Teachers Should Look Beyond \u201cJust Filing\u201d Their Taxes in 2026","author":"ISCommunity","date":"January 12, 2026","format":false,"excerpt":"Many U.S. expats file their tax returns correctly each year and assume that\u2019s the end of the story. In reality, living abroad often creates unusual tax situations that open up planning opportunities most people never notice. The three scenarios below are drawn from TieTax\u2019s years of experience working with U.S.\u2026","rel":"","context":"In "Great Link"","block_context":{"text":"Great Link","link":"https:\/\/internationalschoolcommunity.com\/blog\/category\/great-link\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2026\/01\/Screenshot-2026-01-12-at-17.54.02.png?fit=1024%2C678&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2026\/01\/Screenshot-2026-01-12-at-17.54.02.png?fit=1024%2C678&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2026\/01\/Screenshot-2026-01-12-at-17.54.02.png?fit=1024%2C678&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2026\/01\/Screenshot-2026-01-12-at-17.54.02.png?fit=1024%2C678&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":10285,"url":"https:\/\/internationalschoolcommunity.com\/blog\/navigating-the-labyrinth-a-comprehensive-guide-to-us-expat-tax-filing\/","url_meta":{"origin":9040,"position":2},"title":"Navigating the Labyrinth: A Comprehensive Guide to US Expat Tax Filing","author":"ISCommunity","date":"March 10, 2024","format":false,"excerpt":"For American international school teachers embracing life abroad, the joys of new cultures and experiences are intertwined with the inevitable complexities of navigating foreign systems, including one often maligned but unavoidable beast: taxation. As a US citizen or green card holder residing overseas, understanding your tax obligations and mastering the\u2026","rel":"","context":"In "Information for Members"","block_context":{"text":"Information for Members","link":"https:\/\/internationalschoolcommunity.com\/blog\/category\/information-for-members\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2024\/03\/adventure-2528477_1280.jpg?fit=1200%2C675&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2024\/03\/adventure-2528477_1280.jpg?fit=1200%2C675&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2024\/03\/adventure-2528477_1280.jpg?fit=1200%2C675&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2024\/03\/adventure-2528477_1280.jpg?fit=1200%2C675&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2024\/03\/adventure-2528477_1280.jpg?fit=1200%2C675&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":8697,"url":"https:\/\/internationalschoolcommunity.com\/blog\/are-us-tax-filing-requirements-waived-when-residing-overseas\/","url_meta":{"origin":9040,"position":3},"title":"Do U.S. citizens have to file taxes when living overseas?","author":"ISCommunity","date":"April 3, 2022","format":false,"excerpt":"A general lack of information regarding expat tax filing requirements has often led to incorrect information circulating in expat communities and, as a result, some international school teachers from the USA think that US tax filing requirements are waived when residing overseas. However, every international school teacher holding a US\u2026","rel":"","context":"In "Great Resource"","block_context":{"text":"Great Resource","link":"https:\/\/internationalschoolcommunity.com\/blog\/category\/great-resource\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2022\/04\/income-tax-g14b773be7_1280.jpg?fit=1200%2C800&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2022\/04\/income-tax-g14b773be7_1280.jpg?fit=1200%2C800&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2022\/04\/income-tax-g14b773be7_1280.jpg?fit=1200%2C800&ssl=1&resize=525%2C300 1.5x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2022\/04\/income-tax-g14b773be7_1280.jpg?fit=1200%2C800&ssl=1&resize=700%2C400 2x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2022\/04\/income-tax-g14b773be7_1280.jpg?fit=1200%2C800&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":6677,"url":"https:\/\/internationalschoolcommunity.com\/blog\/americans-filing-taxes-abroad-can-differ-depending-state\/","url_meta":{"origin":9040,"position":4},"title":"Americans Filing Taxes From Abroad: It Can Differ Depending on Your State","author":"ISCommunity","date":"March 1, 2018","format":false,"excerpt":"While many overseas filers don\u2019t realize it, you probably have to file a state return (unless you are from one of the seven states with no state income tax, or perhaps from one of the two that tax only investment income. When you move overseas you still have a domicile\u2026","rel":"","context":"In "Highlighted Articles"","block_context":{"text":"Highlighted Articles","link":"https:\/\/internationalschoolcommunity.com\/blog\/category\/highlighted-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2018\/02\/dollar-941246_640.jpg?fit=640%2C480&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2018\/02\/dollar-941246_640.jpg?fit=640%2C480&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2018\/02\/dollar-941246_640.jpg?fit=640%2C480&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":3502,"url":"https:\/\/internationalschoolcommunity.com\/blog\/big-news-irs-abroad-behind-us-tax-returns\/","url_meta":{"origin":9040,"position":5},"title":"Big News from the IRS for Those Abroad Who Are Behind on US Tax Returns","author":"ISCommunity","date":"August 1, 2014","format":false,"excerpt":"About Us | Contact Us \u00a0 Seriously Good News from the IRS -\u00a0New \u201cPenalty-Free\u201d Program\u00a0for Delinquent Expats We have an important announcement. IRS has just announced a new Amnesty Program. The old, 2012 program, was popular, but had a number of strict entry criteria. It offered great terms - but\u2026","rel":"","context":"In "Highlighted Articles"","block_context":{"text":"Highlighted Articles","link":"https:\/\/internationalschoolcommunity.com\/blog\/category\/highlighted-articles\/"},"img":{"alt_text":"logo","src":"https:\/\/i0.wp.com\/internationalschoolcommunity.com\/blog\/wp-content\/uploads\/2014\/08\/logo.png?resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/internationalschoolcommunity.com\/blog\/wp-json\/wp\/v2\/posts\/9040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/internationalschoolcommunity.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/internationalschoolcommunity.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/internationalschoolcommunity.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/internationalschoolcommunity.com\/blog\/wp-json\/wp\/v2\/comments?post=9040"}],"version-history":[{"count":0,"href":"https:\/\/internationalschoolcommunity.com\/blog\/wp-json\/wp\/v2\/posts\/9040\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/internationalschoolcommunity.com\/blog\/wp-json\/wp\/v2\/media\/9044"}],"wp:attachment":[{"href":"https:\/\/internationalschoolcommunity.com\/blog\/wp-json\/wp\/v2\/media?parent=9040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/internationalschoolcommunity.com\/blog\/wp-json\/wp\/v2\/categories?post=9040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/internationalschoolcommunity.com\/blog\/wp-json\/wp\/v2\/tags?post=9040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}