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 payment. Foreign residency or extended periods abroad of the tax payer is a qualification to avoid double taxation.



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Conversely, earned income abroad, and second income from foreign securities, rental, or anything abroad, could be excluded from U.S. taxable income, or foreign taxes paid thereon, is utilized as credits against You.S. taxes due.

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