IRS Publication 54


DEFINITION of 'IRS Publication 54 '

A document published by the Internal Revenue Service that outlines the tax rules for U.S. citizens or resident aliens earning income in a foreign country. Income earned abroad is typically subject to taxation, and citizens or resident aliens earning income abroad are responsible for the same filing requirements as individuals living in the U.S. IRS Publication 54 discusses how to determine if a tax return should be filed, how to report earnings if they are paid in a foreign currency (the return requires reporting in U.S. dollars), whether estimated taxes should be paid and how to file the return itself. The document also indicates how to treat contributions to foreign organizations, and how to take foreign taxes into account.

BREAKING DOWN 'IRS Publication 54 '

Living abroad also carries with it some special rules for tax deductions and credits. Workers may be eligible to exclude a certain portion of their incomes from taxation, as well as deduct part of their housing expenses from taxable income.

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  1. I am a non-U.S. citizen living outside the U.S. and trading stocks through a U.S. ...

    The tax implications for a foreign investor will depend on whether that person is classified as a resident alien or a non-resident ... Read Full Answer >>
  2. When am I not required to submit a social security number on my tax return?

    When filing your tax return, you are generally required to include the social security numbers of yourself and the individuals ... Read Full Answer >>
  3. Are catch-up contributions included in the 415 limit?

    Unlike regular employee deferrals, catch-up contributions are not included in the 415 limit. While there is an annual limit ... Read Full Answer >>
  4. Are personal loans tax deductible?

    Interest paid on personal loans is not tax deductible. If you take out a loan to buy a car for personal use or to cover other ... Read Full Answer >>
  5. Can a Flexible Spending Account (FSA) be used for Lasik?

    The owner of a Flexible Spending Account (FSA) can use money from the account on various eye surgery procedures, including ... Read Full Answer >>
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