# Living abroad but ONLY earning income from US



## NanFan (Jan 28, 2013)

Hi! I lived abroad for an entire year, worked out of my home there, but only got paid through US income. I am wondering how I file my taxes in the US. How do I figure exchange rate expenses? Are there any breaks?

Thank you!

NanFan


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## BBCWatcher (Dec 28, 2012)

There are no exchange rate issues if you were paid in the U.S. in U.S. dollars. You would calculate U.S. dollar equivalents if you incurred expenses (in euro, presumably) that are deductible and/or reportable. For example, on your FBAR (Form TD F 90-22.1) you would convert a euro bank account to U.S. dollars, then report the U.S. dollar amount(s).

Read IRS publications very carefully to determine whether you qualify for the foreign earned income and foreign housing exclusions.


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## Bevdeforges (Nov 16, 2007)

To qualify for the FEIE (foreign earned income exclusion) you need to have been outside the US for either an entire calendar year or for 12 consecutive months. Take a look at IRS Publication 54 for all the details.

Expenses incurred while living overseas can be converted to US dollars using any standard exchange rate - plus, the IRS publishes its own list of average exchange rates for many countries. Last time I checked, though, they hadn't yet updated their table for 2012.
Cheers,
Bev


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