Can you please explain how this works. My gross Swiss income is slightly under the FEIE limit. (not taking into account taxes, housing exemptions)

Say for example i earn 50,000 gross, I pay my contributions to AHV, PK, and the employer gives a matching portion of that as well into the system. Does that mean that my actual income in the eyes of the US is 50K+ whatever my employer contributions are?

If you earn chf 50k gross or even up to whatever 90k usd is in chf (depending on exchange rates) and you don't have major income from investments you will not owe the US govt anything. You still need to file a return but can download turbotax and it's easy step by step.

The rules vary on this state by state. You need to break residency. It's worth reading the state rules.

So what happens if you are slightly under the tax threshold and your company's contribution to your AHV and Pensionskasse takes you over the threshold?

Technically, Pensionskasse counts as income and you should include
it on your return.

Thanks! The employers contribution to the AHV does not count as income then.

To be honest, I am not sure, but I do not declare it personally.

There is an American CPA here that specializes in taxes.

Do you want her contact?

Sure, should be beneficial.

I have a question- as an American with 2 children (both are dual US/CH), can I claim the child credits for them or do we need to physically live stateside to claim it?

yes you can claim it.

Thank you! The following link was really helpful!

Are capital gains really 100% US tax liable?

I recently sold some stocks with a capital gain. My US tax preparer advised that I can't counter this with any Swiss tax credits since CH has no tax on capital gains. He says each category of income is separate. Could anyone confirm if this is correct?
This means that any gains in investment income would be 100% taxable in the US regardless whether one is below the FEIE.

He is correct. You cannot combine categories of income. I have this issue each year because I have foreign tax credits that I carry forward each year. I can use these credits against my earned income, but not any other categories.

Also, dividends don't fall under the FEIE. The clue is in the second 'E' (FEIE), which stands for Foreign Earned Income Exclusion. Dividends are unearned income, not earned income.

But what about the 350.-- CHF interest that my savings accounst bequested me with last year! I didn't "Earn" them either!

I am guessing it is not a serious question, clearly not earned.

That is why retiring abroad with a US tax obligation is near financial suicide, at least in a low income tax country like CH, no FEIE.

Sorry to drag up an old thread, but I could not find anywhere in the guide where it says Your first $91K earned abroad will not be taxed. Can anyone confirm this is true? Does this mean that I do not need to fill out tax forms until after I have earned 91,000?

You are referring to the Foreign Earned Income Exclusion, which is $97,600 for 2013. You can exclude this income, but you still need to file a tax return.

http://www.irs.gov/Individuals/Inter...come-Exclusion

Thanks for the link!

So basically every year, I fill out a tax return but never owe US taxes because I earn under the FEIE?

That's the gist, but be aware that there might be some complications. For instance, time spent working in the US, such as business trips while resident abroad, could reduce the FEIE. Also be aware that investment income might be treated differently in CH and in the US.

OH, and whatever you do - don't forget your FBAR!

Thanks. Oh boy I don't even know what FBAR stands for. Commencing more google research.