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Service · tax planning · updated 28 August 2026

Most expat tax is decided before the year ends, not when the return is filed.

Three decisions move the number: which twelve months you use for the physical presence test, whether you claim the exclusion or the foreign tax credit, and when you move. A 45-minute Expat Tax Position Review is $195, credited in full against any package booked within 60 days.

Book a position review $195, credited back
01

Choosing the qualifying period

The 330-day test runs over any rolling twelve months. In an arrival or departure year the period you pick decides how much of the $130,000 exclusion you get to use for tax year 2025.

02

Exclusion or foreign tax credit

In a high-tax country the credit often beats the exclusion, and it leaves room for retirement contributions. Revoking the exclusion binds you for five years, so it is decided deliberately, not by default.

03

Timing a move

Leaving in January instead of December can change the exclusion, the housing exclusion and your state residency in one step. So can a contract that starts mid-August.

A worked comparison, tax year 2025

Salary $180,000Exclusion (Form 2555)Credit (Form 1116)
Host country tax 0% — GulfBetterNo foreign tax to credit
Host country tax about 20%Usually betterCredit falls short at the top
Host country tax about 35% — much of EuropeLeaves credit unusedUsually better
Want to fund an IRAExcluded income does not countBetter — income stays included
Directional, not a computation for your facts: the crossover depends on filing status, housing costs and the mix of earned and unearned income. Sources: IRC §911, §901; IRS Publication 54. Checked 28 August 2026.

What you get

  • Forty-five minutes on the call, with your figures open
  • A written summary: the position, the elections and the dates that matter
  • The fee credited in full against any package booked within 60 days

Ongoing advisory and annual retainers are published under my own name at jorgerivas.pro.

Questions about planning

When should this happen?

Before the year closes. After 31 December the qualifying period, the election and the timing of a move are all already fixed — the return can only report what happened.

Is the $195 credited if I book a return?

Yes, in full, against any package booked within 60 days of the review.

Can I switch from the exclusion to the foreign tax credit?

Yes, but revoking the Foreign Earned Income Exclusion binds you for five years without IRS consent. It is a decision to make deliberately, not by default.

Does the exclusion stop me funding an IRA?

Excluded income does not count as compensation for IRA purposes. If retirement contributions matter to you, the credit keeps the income included and the door open.

I want ongoing advice, not one review.

Annual retainers and planning intensives are published under my own name at jorgerivas.pro — Annual Retainer $1,295 a year, Planning Intensive $495.

Expat tax returns →Every price →Book a position review →

The levers close on 31 December.

Forty-five minutes with your figures open, $195, credited in full against any package booked within 60 days.

Complete return $599
Prepared and signed by an Enrolled Agent
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