FEIE is a vital acronym for the US expatriate or Perpetual Traveler! For 2013, the Foreign Earned Income Exclusion is up to US$97,600. That's right, no US income tax on your first $97,600 of earned income if you reside outside the US.
It does not matter if the earnings come from your US employer or a company abroad. If you live outside the US for at least 330 days per year, or have legal residency in a foreign country (e.g. an expat residing in a foreign country on an employment visa), a lot of your earnings are protected from the clutches of the IRS.
If you are lucky enough to live in a country without income taxes, or you are a PT residing here-a-bit, there-a-bit, outside taxation obligations, you can be free of onerous income taxes entirely. If you reside where your foreign income is taxed, what you pay there may be credited to what you owe IRS if your income goes over the exclusion maximum.
FEIE only applies to earned income! So interest, dividends, rental income, and other forms of unearned income remain subject to US taxes.
No exemption from filing! Do be careful to file all your proper tax and other financial forms on time if you are a US citizen, legal permanent resident, or other "US person" subject to IRS reporting requirements. IRS is quietly - but as deadly as a krait in the bamboo - going after expats. Hey, the US is broke, so Taxman is as greedy as ever, just more desperate for your dollars (yen, rupees, Euros, and everything else).
Tax-time is always stress-time. But FEIE can seriously reduce your pain.
May your road rise to meet you!
Ann
Saturday, January 26, 2013
Friday, January 25, 2013
Lessons from Sandy
Sandy was a superstorm which affected millions - residents and travelers alike. Tales of the powerless, whether in airports or homes or storm shelters, reminded me of a crucial travel item every Road Warrioress needs to keep in their suitcase, carry-on, handbag, attache - and on their keyring. Flashlights!
LED technology, miniaturization, longer battery lives, even battery-less technologies give us an amazing array of lightweight, tiny, endless packable light sources for all kinds of travel (and other) emergencies. There's no longer any excuse for sitting in the dark when the power is out anywhere in the world.
I have a 3-light LED lightbar. With sticky-back and magnet, I can put it up almost anywhere for hours of enough light to work by. That goes in my suitcase for use in hotel rooms and similar places for longer stays.
A tiny penlight goes on a keyring. Great for finding keyholes and keycard swipes in the dark, even a poorly lit parking lot or dim hotel hallways. I can see which direction the keycard goes, saving me frustrating swipes and re-swipes.
Another tiny flashlight - not much larger or thicker than my thumb! - fits in a pocket of my purse. One of these days I may get a carabiner clip to attach it to the D-ring for the handle. But with a well-organized multi-pocket shoulder bag, I can dig it out in a jiffy.
A chemical light wand is another great invention. Shake it and you have several minutes of light. Nothing you can read by, but enough to walk short distances or find what you're hunting for. No worries about dead batteries, either. Tuck one in a handbag, computer case, carry-on, car's glove compartment, and it will be handy in an emergency.
I wish I'd had a camper's headlamp while crawling through Batu Caves in Malaysia, outside Kuala Lumpur. Strap it around your forehead for a small but bright light. Hands-free use, too! That one is enough light to illuminate a page properly for reading. Hey, when the power is out, there's not much to do. But a book and decent book light can at least banish "the boreds" when everything else seems to be out of commission.
Get a flashlight! Get more than one. With such tiny-but-powerful light sources and so little weight or space required, even a backpacker can manage to tote at least two types for various purposes.
Hurricanes, volcanic eruptions, blizzards and other disasters can knock out power for days, even weeks. But with a little light, you'll survive better than those who are unprepared for disaster.
May your road rise to meet you!
Ann
LED technology, miniaturization, longer battery lives, even battery-less technologies give us an amazing array of lightweight, tiny, endless packable light sources for all kinds of travel (and other) emergencies. There's no longer any excuse for sitting in the dark when the power is out anywhere in the world.
I have a 3-light LED lightbar. With sticky-back and magnet, I can put it up almost anywhere for hours of enough light to work by. That goes in my suitcase for use in hotel rooms and similar places for longer stays.
A tiny penlight goes on a keyring. Great for finding keyholes and keycard swipes in the dark, even a poorly lit parking lot or dim hotel hallways. I can see which direction the keycard goes, saving me frustrating swipes and re-swipes.
Another tiny flashlight - not much larger or thicker than my thumb! - fits in a pocket of my purse. One of these days I may get a carabiner clip to attach it to the D-ring for the handle. But with a well-organized multi-pocket shoulder bag, I can dig it out in a jiffy.
A chemical light wand is another great invention. Shake it and you have several minutes of light. Nothing you can read by, but enough to walk short distances or find what you're hunting for. No worries about dead batteries, either. Tuck one in a handbag, computer case, carry-on, car's glove compartment, and it will be handy in an emergency.
I wish I'd had a camper's headlamp while crawling through Batu Caves in Malaysia, outside Kuala Lumpur. Strap it around your forehead for a small but bright light. Hands-free use, too! That one is enough light to illuminate a page properly for reading. Hey, when the power is out, there's not much to do. But a book and decent book light can at least banish "the boreds" when everything else seems to be out of commission.
Get a flashlight! Get more than one. With such tiny-but-powerful light sources and so little weight or space required, even a backpacker can manage to tote at least two types for various purposes.
Hurricanes, volcanic eruptions, blizzards and other disasters can knock out power for days, even weeks. But with a little light, you'll survive better than those who are unprepared for disaster.
May your road rise to meet you!
Ann
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