IRS Publication 54

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

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    When filing your tax return, you are generally required to include the social security numbers of yourself and the individuals ... Read Full Answer >>
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    Despite the fact that earning dividends requires no active participation on the part of the shareholder, they do not meet ... Read Full Answer >>
  4. Is dividend income taxable?

    Dividend income is taxable but it is taxed in different ways depending on whether the dividends are qualified or nonqualified. ... Read Full Answer >>
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    While there is no legal reason why you cannot withdraw funds from your IRA to start a traditional savings account, it is ... Read Full Answer >>
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    Your spousal Social Security benefits may be taxable, depending on your total household income for the year. About one-third ... Read Full Answer >>

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