Enrolled Agent Exam [Part 1] 23, Foreign Income and Foreign Accounts

This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams. In this episode you will learn: • U.S. persons are subject to tax on their worldwide income, no matter where they reside. • Form 2555, the Foreign Earned Income Exclusion, applies only to earned income like salaries, not to investment income like dividends or interest. • You cannot claim the Foreign Tax Credit (Form 1116) for taxes paid on income you've already excluded with Form 2555. • An FBAR (FinCEN Form 114) filing is required if the combined value of all foreign financial accounts exceeds $10,000 at any time during the year. • The FBAR is a reporting form filed separately with FinCEN, not the IRS, and has significant penalties for non-compliance. For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or Youtube Channel: https://www.youtube.com/@Open-exam-prep