Question

Am I tax exempt

Forum|Forum|6 years ago
November 22, 2019
1 reply
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I am an overseas contractor and started last week ( nov 17th 2019). I will be doing 6 week rotations in afghanistan. 42 days in afghan then 37 days back in the U.S. and repeat. I am being told from guys I work with that we dont have to pay taxes and that trump passed something recently that allows this. I know of the 330 rule, which I do not meet of course, but something about me planning to keep this job for several years makes me eligible? Must have the job longer than a year?

DoninGA

The tax code has not changed in any way concerning claiming the foreign earned income exclusion where the taxpayer has to meet either the Bona Fide Residence Test or the Physical Presence Test.

IRS website for the Physical Presence Test - https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-physical-presence-test

IRS website for the Bona Fide Residence Test - https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-bona-fide-residence-test

IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad - https://www.irs.gov/pub/irs-pdf/p54.pdf