--- title: "Talking Taxes: Foreign Income for Expats (Part 1 of 2)" description: Several tax credits are available to make double taxation more lenient for expatriates living outside the US. image: https://www.ironscpa.com/hs-fs/hub/332864/file-1758670425.jpg --- ![icon-phone](https://www.ironscpa.com/hs-fs/file-469552994-png/images/icon-phone.png)508-533-5700 **Call today to book your appointment!** [![Ann M. Irons](https://www.ironscpa.com/hs-fs/file-480654324-png/images/circle-logo4.png?width=630&height=168&name=circle-logo4.png "Ann M. Irons")](https://www.ironscpa.com/) Hopkinton MA, CPA [Contact](https://www.ironscpa.com/contact-us) [Directions](https://www.google.com/maps/dir//Ann+M.+Irons,+CPA,+17+Main+St+Suite+1,+Hopkinton,+MA+01748/@42.2283595,-71.5220826,17.25z/data=!3m1!5s0x89e470559903948b:0xba338aa31b2a0f29!4m9!4m8!1m0!1m5!1m1!1s0x89e46e7ca0d1d73b:0x531938b62807ebe1!2m2!1d-71.5200665!2d42.2284497!3e0?authuser=0&entry=ttu&g_ep=EgoyMDI1MDExNS4wIKXMDSoASAFQAw%3D%3D) [![facebook](https://www.ironscpa.com/hs-fs/file-811720473-png/images/facebook.png)](https://www.facebook.com/AnnIronsCPA?ref=br_tf)[![LinkdIn](https://www.ironscpa.com/hs-fs/hub/332864/file-817405565.png)](https://www.linkedin.com/company/ann-m-irons-cpa-llc)[![twitter](https://www.ironscpa.com/hs-fs/hub/332864/file-817410620.png)](https://twitter.com/AnnMIronsCPALLC) # The Bean Counter with Ann M Irons, CPA --- [![Tax Year 2024 Business/Individual Tax Returns](https://no-cache.hubspot.com/cta/default/332864/aef2b35b-07b9-4f4e-be11-0410ebf842de.png)](https://cta-redirect.hubspot.com/cta/redirect/332864/aef2b35b-07b9-4f4e-be11-0410ebf842de) --- ## [Talking Taxes: Foreign Income for Expats (Part 1 of 2)](https://www.ironscpa.com/blog/talking-taxes-foreign-income-for-expats-part-1-of-2) Posted by [Ann Irons, CPA](https://www.ironscpa.com/blog/author/ann-irons-cpa) Sep 16, 2014 12:48:00 PM - [Tweet](https://twitter.com/share) ![expat-tax-tips](https://www.ironscpa.com/hs-fs/hub/332864/file-1758670425.jpg?width=375&name=file-1758670425.jpg)Relocating is a stressful and complicated process even if you’re only moving a few blocks away. For someone who opts to live abroad, these concerns are compounded by international tax requirements. Whether you’re considering a job-related move or a (very) extended vacation, you’ll need **international tax planning in Bellingham, MA. **[Ann Irons](https://www.ironscpa.com/international-tax), a Massachusetts CPA, shares a two-part guide to navigating tax planning for expatriates. ## An Eye-Opening Requirement Believe it or not, just because you live outside of the United States doesn’t necessarily mean you won’t be required to continue [paying your taxes](https://www.ironscpa.com/individual-taxes) to the IRS. If you earn foreign income, this rule applies—even if you’re also paying taxes to the country or countries in which you’re staying. As far as the IRS is concerned, residents and citizens alike can be taxed on their *worldwide* income, not just income earned within the United States. Your host country may or may not require worldwide income reporting. For example, Canada does not have a similar requirement for its citizens. Fortunately, multiple tax breaks are available from the IRS, reducing the amount of long-distance taxes you can expect to pay. ### Foreign Tax Credit After a prolonged amount of time (six months for most countries), you will be expected to pay taxes to the country in which you’ve taken residence. This means you’ll also be paying the US; this is called *double taxation*, and our tax code permits a [foreign tax](https://www.ironscpa.com/blog/essential-tax-tips-for-non-us-citizens) credit. First, you’ll look at the tax rates for the US and your country of residence. Subtract the lower rate from the higher rate, and pay the amount of the higher tax rate, divided evenly among the US and the other country. ### Foreign Earned Income Exclusion As an expatriate, you may be eligible to claim the Foreign Earned Income Exclusion. Effective 2013 and on, you may exclude as much as $97,600 of your [foreign-earned income](https://www.ironscpa.com/blog/bellingham-ma-tax-preparer-discusses-tax-treaties). However, you must first be able to prove that you have lived in your country of residence outside the US for a minimum of 330 days. These 330 days must fall within a consecutive 12-month period. Irons adds that you cannot claim this inclusion if you are living on the high seas, or if you are living somewhere with no government, such as the continent Antarctica. **Questions about filing taxes as an expatriate? **To learn more about international taxes, or to schedule a consultation with [Ann Irons, CPA, LLC](https://www.ironscpa.com/about-the-company), [contact us](https://www.ironscpa.com/contact-us) at (508) 966-0700. We welcome businesses, individuals, and law practices based in and around Bellingham, Woonsocket, Medway, Milford, and the surrounding areas. Topics: [Individual Income Taxes](https://www.ironscpa.com/blog/topic/individual-income-taxes), [International Tax](https://www.ironscpa.com/blog/topic/international-tax) ## About **Ann M. Irons, CPA LLC** ![Ann](https://www.ironscpa.com/hubfs/images/Ann.jpg)Ann has spent over 25 years in the financial service industry, gaining knowledge and experience that allows her to provide an array of tax, and accounting and advisory services for her clients. Relying on a stringent code of ethics and a dedication to maintaining the highest industry standards, Ann works hard to ensure her clients receive the quality service they’ve come to expect. A member of AICPA and MSCPA, Ann has also had an article featured in the renowned publication, Banker and Tradesman.  ### Subscribe to Email Updates Search by Topic Search ### Recent Posts ### Posts by Topic - [Small Business Accounting (24)](https://www.ironscpa.com/blog/topic/small-business-accounting) - [Individual Income Taxes (18)](https://www.ironscpa.com/blog/topic/individual-income-taxes) - [International Tax (17)](https://www.ironscpa.com/blog/topic/international-tax) - [Accounting for Lawyers (11)](https://www.ironscpa.com/blog/topic/accounting-for-lawyers) - [Escrow Accounting (10)](https://www.ironscpa.com/blog/topic/escrow-accounting) - [Foreign Investment Tax (8)](https://www.ironscpa.com/blog/topic/foreign-investment-tax) - [Family Business (6)](https://www.ironscpa.com/blog/topic/family-business) - [Bookkeeping (5)](https://www.ironscpa.com/blog/topic/bookkeeping) - [Personal Finance (4)](https://www.ironscpa.com/blog/topic/personal-finance) - [Client Stories (3)](https://www.ironscpa.com/blog/topic/client-stories) - [Payroll Processing (3)](https://www.ironscpa.com/blog/topic/payroll-processing) - [Small Business Tax (3)](https://www.ironscpa.com/blog/topic/small-business-tax) - [Starting Your Own Law Firm (1)](https://www.ironscpa.com/blog/topic/starting-your-own-law-firm) - [Words of Wisdom (1)](https://www.ironscpa.com/blog/topic/words-of-wisdom) [see all](https://www.ironscpa.com/blog/talking-taxes-foreign-income-for-expats-part-1-of-2#) ## Inviting You to Visit Our Office! Please call us at your earliest convenience to set up a consultation. We look forward to meeting you, and determining how we can best serve you. ![Map Irons CPA Hopkinton](https://www.ironscpa.com/hs-fs/hubfs/images/Map%20Irons%20CPA%20Hopkinton.png?width=305&height=167&name=Map%20Irons%20CPA%20Hopkinton.png)   ### OUR LOCATION: 17 Main Street, Suite 1 Hopkinton, MA 01748 Phone: 508-533-5700 Fax: 888-922-2242 ## About Ann M. Irons, CPA LLC Ann Irons’ personal philosophy focuses on strong experience, integrity, and commitment to service above all else.  [Learn More](https://www.ironscpa.com/meet-ann-irons) ## Navigation ## Recent Blog Posts ## [![facebook](https://www.ironscpa.com/hs-fs/file-811720473-png/images/facebook.png)](https://www.facebook.com/AnnIronsCPA?ref=br_tf)[![G+](https://www.ironscpa.com/hs-fs/hub/332864/file-815314232.png)](https://plus.google.com/b/100124969766767305083/100124969766767305083/about)[![LinkdIn](https://www.ironscpa.com/hs-fs/hub/332864/file-817405565.png)](https://www.linkedin.com/company/ann-m-irons-cpa-llc)[![twitter](https://www.ironscpa.com/hs-fs/hub/332864/file-817410620.png)](https://twitter.com/AnnMIronsCPALLC) ## Ann M. Irons, CPA LLC © 2025. All rights reserved.   ![](https://googleads.g.doubleclick.net/pagead/viewthroughconversion/951439776/?value=0&guid=ON&script=0)