If you’re an American citizen living abroad, you can enjoy tax exemption on your income earned outside the United States.
The IRS will consider you a nonresident alien if you meet any of these four conditions:
You are a U.S. citizen who lives in a foreign country and is not considered to be resident in the United States for income tax purposes;
You are a U.S. citizen who lives in Puerto Rico;
You are a U.S. citizen who lives in Guam or other U.S. territory;
You are a dual citizen (meaning that you are also a citizen of another country).
In order to qualify for tax exemption as nonresident alien, you must satisfy all three of these requirements:
1) You must be present in the United States for less than 183 days during the tax year;
2) Your income from sources within the United States cannot exceed $10,000 during the tax year; and
3) Your income from worldwide sources cannot exceed $100,000 during the tax year (or $200,000 if married filing jointly).
4) You must be in the United States for less than 183 days during the tax year;
5) Your income from sources within the United States cannot exceed $10,000 during the tax year; and
6) Your income from worldwide sources cannot exceed $100,000 during the tax year (or $200,000 if married filing jointly). You must be in the United States for less than 183 days during the tax year;
7) If you live abroad, you may be eligible for a foreign tax credit, allowing you to offset your foreign taxes against the income taxes that you pay in the United States.
8) You can exclude from your income the value of meals, housing and other benefits provided to you by your employer.
9) You may be able to deduct some of your moving expenses if you relocate for employment.
10) Your investment in a health savings account is tax-deductible on Form 1040 or Form 1040NR as an adjustment to income, subject to certain limitations
11) If you are self-employed, you may be able to deduct some of the costs associated with your business on Schedule C.
12) If you pay for health insurance premiums, they may be tax-deductible as an adjustment to income on Form 1040 or Form 1040NR.
13) You can exclude from your income interest earned on U.S. savings bonds issued after 1989 if used toward qualifying educational expenses
14) Your employer may provide a commuter subsidy, which is tax-free up to $130/month (as of 2018).
15) If you are a member of the Armed Forces, you may be able to deduct some of your moving costs on Form 1040 or Form 1040NR.
16) You can deduct the cost of travel between your home and work if your employer requires it.
17) You can get a tax deduction for safety equipment at work, such as goggles or gloves.
18) You can deduct the cost of uniforms if they are required by your employer.
19) You may be able to deduct moving expenses when you move for work-related reasons.
20) If you have a job that requires travel away from home overnight, you may be able to deduct the cost of lodging and meals on Form 1040 or Form 1040NR.
21) You can claim up to $2,500 in tax credits each year if you paid for education expenses that helped