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Tax Simplification for Americans Abroad: New Forms and Income Rules

This act aims to simplify tax filing for U.S. citizens living abroad. It introduces a new, simplified tax form that will replace several complex existing documents. It also expands the definition of foreign earned income, which may affect what income is exempt from U.S. taxation.
Key points
A new, simpler tax form (similar to Form 1040-EZ) for Americans living abroad, replacing multiple current forms.
Simplified form available for individuals with income under $400,000 and zero tax liability.
Expansion of foreign earned income definition to include pensions, scholarships, interest, dividends, and capital gains, potentially reducing tax burdens.
Ability to declare foreign taxes paid and U.S. source income (pensions, social security) as treaty income if tax has already been paid.
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Additional Information
Print number: 117_HR_6057
Sponsor: Rep. Beyer, Donald S., Jr. [D-VA-8]
Process start date: 2021-11-19