IRS Announces 2011 Foreign Earned Income Exclusion Amount

The IRS has announced that the maximum amount that can be claimed for the foreign earned income exclusion for 2011 is $92,900.  This is up from $91,500 in 2010.

This would apply if you have foreign earnings such as wages, salary or business profits and meet the other requirements.  It is claimed on Form 2555.  It does not apply to unearned sources of income such as pension, interest and dividends.

In addition, you may be able to  deduct or exclude foreign housing  costs (such as rent or utilities) within certain limits.

Please contact me if you have questions or want more information.