In 2012 Over $95,000 Can Be Excluded From Taxes. See How

OK, so the title was a little over the top, however, it is completely true. But you have to move offshore, and there are some requirements that you must meet.

It is easy to understand why more and more, web site owners who are earning in the six figure range, are moving offshore. If you can run your business offshore, than why not move to a villa or condo on the beach and pay no taxes on your income?

Below is the legal wording, provided by the IRS on:


Foreign Earned Income Exclusion

If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction.

If you are a U.S. citizen or a resident alien of the United States and you live abroad, you are taxed on your worldwide income. However, you may qualify to exclude from income up to an amount of your foreign earnings that is now adjusted for inflation ($91,400 for 2009, $91,500 for 2010, $92,900 for 2011, $95,100 for 2012). In addition, you can exclude or deduct certain foreign housing amounts.

You may also be entitled to exclude from income the value of meals and lodging provided to you by your employer. Refer to Exclusion of Meals and Lodging in Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad, and Publication 15-B, Employer's Tax Guide to Fringe Benefits for more information.