Dealing With Tax Problems: Easy As Pie
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In addition, an American living and outside america (expat) may exclude from taxable income the income earned from work outside the country. This exclusion is in 2 parts. You will get exclusion is restricted to USD 95,100 for the 2012 tax year, and USD 97,600 for the 2013 tax year. These amounts are determined on a daily pro rata cause all days on which your expat qualifies for the exclusion. In addition, the expat may exclude just how much he or she paid a commission for housing in a foreign country in an excessive amount 16% of this basic difference.
This housing exclusion is restricted by jurisdiction.