What is a PFIC ?!

What is a PFIC ?! It is one of the tools the US Government uses to discourage funds leaving the US economy. Read this article for a full explanation

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IRS Not happy about $450 Million in lost Revenue

A recent study conducted by the Treasury Inspector General for Tax Administration (TIGTA) indicates that a large number of taxpayers living abroad are calculating incorrectly one of the most important elements of their tax return: The foreign earned income exclusion.

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What is the foreign tax credit, Form 1116?

The US reduces your income tax liability dollar for dollar for any taxes paid to a foreign government. This comes in especially handy when your wages exceed the foreign earned income exclusion, but there are several points to keep in mind, as the “dollar for dollar” part of the definition can’t unfortunately be taken verbatim. It was intended to avoid double taxation of US taxpayers.

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