Form 8865 Expat 2024

You, in addition to the foreign earned income exclusion, many taxpayers are eligible for the foreign housing exclusion as well. This depends on where you live and the amount you would be entitled to claim, which is subject to a threshold amount of about sixteen thousand dollars. For example, here in Dubai, we get 50,174 dollars, while in Qatar, you get 36,264 dollars. So, it varies substantially depending on your location in the world. To determine your total expenses, we consider the rent you've paid, utilities, repairs, maintenance, and other similar costs. These expenses are added together to create your total expenses. This can significantly help in determining and lowering your tax liability. For instance, in Dubai, we can claim a possible exclusion of 50,174 dollars. However, even if you're paying more than that in rent and utilities, you will still only be eligible for 50,174 dollars. If you're living more modestly in one of the less expensive areas of the city and your housing expenses are only thirty thousand dollars for the year, then that's the number we work with. However, it's still subject to the sixteen thousand dollar threshold. So, I'm not suggesting you go out and spend extravagantly on rent, but keep in mind that your housing expenses are taken into consideration when determining your tax liability.