3 ms·
You don't pay taxes on on your first like 118k in income [1]. Because this lowers your AGI even if you make more than that you still start at the bottom of the
by AdamM12 8y ago
You don't pay taxes on on your first like 118k in income [1]. Because this lowers your AGI even if you make more than that you still start at the bottom of the tax bracket. Rough example you make 125k thus 125k-118k - 7k in taxable income thus in 10% bracket. There are obviously other rules for non W-2 income and property taxes.
[1] https://en.wikipedia.org/wiki/Foreign_earned_income_exclusion https://en.wikipedia.org/wiki/Foreign_earned_income_exclusio...