Wag said:
Tax free up to 80K a year. After that you have to pay uncle sam for the difference.
Thats if your single.
Married and both working Abroad, up to $ 160,000.
Not including
Foreign Housing Exclusion and Deduction.
After deducting $ 11,581. per year, anything else you covered is excluded also.
Or $ 31.64 on a daily basis.
So if you spend $ 45,000. @ year in housing and utilities, subtract the $ 11,581. you can Exclude another $ 33,419. from you Gross Taxable income, for a grand total $ 193,419. in tax free income.
You now start tacking your stateside deductions, for the home you are maintaining in the U.S. and stretch it some more.
As always, see a professional Tax Attorney, for advice, never and I do mean never believe anything on the Internet.
Tim H.