Eligible U.S. citizens and residents living abroad are allowed to exclude from income a portion of their housing expenses paid by employers. The IRS recently announced that for 2024, foreign-based taxpayers who receive income from an employer can exclude or deduct a maximum $37,950. This allowance helps protect expatriates from double taxation when they pay tax both in the country where they’re living and in the United States. Qualified housing expenses include rent, utilities, property insurance, parking and rented furniture. However, mortgage payments, furniture purchases, phone and internet service, and some other expenses don’t count toward the exclusion. Contact us for more information.
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