I have gone to irs.gov but i still don't understand what deductions i am allowed while living abroad.
I am a US citizen, retired and living in Dominican Republic.
Any advice would be appreciated .
If you are out of the country for more than 1 year, the first $87k approximately is tax free....that's the best deduction you can get but it's just as easy to call a cpa or call the IRS they are easy to speak with.
he does not say anything about having income in the dr or even a business so I think until he gets more specific, no one can really answer. and as he says, he is retired so maybe there is only soc.sec and maybe a pension.
From my understanding, it's only the state tax's that can be deferred if your outside of the US - If your income is earned from within the US there's no way out of paying taxes...regardless of where you live in the world.
It's earned in the US, therefore NOT EXEMPT.would that include a pension paid from the US as being exempt or not?