DESCRIPTION
This module provides an overview of U.S. tax rules related to foreign income for individual taxpayers. It covers the purpose and filing requirements of Schedules K-2 and K-3, along with key components of the foreign tax credit and foreign earned income exclusion, including calculation methodologies and eligibility considerations. Participants will also review foreign financial reporting requirements such as FBAR and FATCA, recent OBBBA updates, and the role of income tax treaties. Through practical exercises and a comprehensive case study, the module reinforces the application of international tax compliance concepts.
LEARNING OBJECTIVES
- Identify the purpose and filing requirements of Schedules K-2 and K-3, including applicable exceptions such as domestic filing and small business exceptions.
- Compute the allowable foreign tax credit using applicable limitation rules, including the treatment of carryovers and relevant elections.
- Calculate the foreign earned income exclusion.
- Analyze foreign financial reporting requirements, including FBAR and FATCA, and determine when specific filings are required.
- Summarize key provisions of recent OBBBA updates and evaluate their impact on the reporting of foreign income and related tax positions.
- Explain the purpose of income tax treaties.
