The Foreign Housing Deduction is a tax benefit available to U.S. citizens and resident aliens who live and work abroad. It allows you to deduct certain housing expenses from your gross income, potentially reducing your U.S. tax liability.
The deduction applies to amounts considered for housing expenses, which can include rent, utilities (except for telephone charges), real estate and personal property insurance, nonrefundable fees for securing a leasehold, rental of furniture and accessories, residential parking, and household repairs.
You must meet the requirements for the Foreign Earned Income Exclusion (FEIE)
The amount of qualified housing expenses eligible for the deduction is subject to a base amount and a maximum limit, which can vary depending on the location.
Start your taxes today with the guidance and support of one of our expert accountants: Get Started Today!