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2011 Foreign Earned Income & Housing Exclusions

posted Jan 6, 2012, 6:11 AM by Krozel Capital   [ updated Jan 24, 2012, 11:21 AM ]

The 2011 Foreign Earned Income Exclusion is $92,900 (up from $91,500 in 2010). The 2011 Housing Exclusion floor is $14,864 and the ceiling is dependent on the country where you reside per IRS guidelines (for example: in Singapore it is $67,000). 

Example:  Joe lived and worked in Singapore during all of 2011 and his total 2011 income was $120,000USD. His total housing expenses were $25,000USD. Joe can exclude the first $92,900 from his income and can take an additional housing exclusion of $10,136 (total housing expenses of $25,000 less the set floor amount of $14,864). Joe’s total exclusion is $103,036 (92,900 + 10,136). 
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