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There is much confusion about what constitutes foreign earned income with respect to the residency location, the location where the work or service is performed, and supply of the salary or fee pay. Foreign residency or extended periods abroad belonging to the tax payer is a qualification to avoid double taxation. B) Interest earned, despite the fact that paid, throughout a bond year, must be accrued at the end of the bond year and reported as taxable income for your calendar year in how the bond year ends.

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