Is Congress planning to repeal the Foreign Earned Income Exclusion law?

Question

I have heard there is a bill to repeal this law, which allows US citizens working in foreign countries to deduct from their taxes up to ~$87,000 of their income. I wasn't able to find any information on this. Please only answer if you have any hard information, like the bill #, or information from a tax professional.

HR 4752 in the 110th congress is to remove the FEIE cap

HR 4752 in the 109th congress was to reinstate the draft

I am an engineering contractor in Iraq and my salary is 240K/yr

Answer 1

HR 4752 is the bill to remove the cap, not to eliminate it.

Answer 2

Uhhh... HR 4752 is a bill to reintroduce the draft and national service and apply it equally to men and women. Unless there's a hidden rider regarding the FEIE, that's not the bill that would repeal the cap.

Answer 3

Well living overseas for a number of years, I have never used it, if you have to depend on your salary where I live you are in a bad way, a doctor only makes about $500 a month. My social security is more than a Senator makes. Plus anyone making 87K here would not declare it anyway.

Answer 4

Who knows what congress will actually do? Having a bill introduced certainly doesn't mean it will be passed. Although they'd probably have an easier time getting agreement to pass a bill to RAISE taxes than passing one that would CUT taxes.

Answer 5

You should check with Nancy Pellozi... Based on what she has accomplished since taking office she can't be to busy.