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 fee. Foreign residency or extended periods abroad of your tax payer is really a qualification to avoid double taxation.

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2) An individual participating inside your company's retirement plan? If not, test? Every dollar you contribute could reduced taxable income decrease your taxes to boot.

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Unsure with the tax years you still need transfer pricing organizing? Then give the IRS a cell phone. They can pull up your bank account with information that you provide on the telephone. For example, your tax history shows the years that you need to filed a return, the level of your refund or any amount that arrives. If you have made payments to your account they will also help in determining the amounts that happen to applied and the remaining balance.

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