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>>> On the other hand, it is possible to change it with very little loss of revenue to the US because this taxation raises very little money in practice. Are y

by pmorici 12y ago

>>> On the other hand, it is possible to change it with very little loss of revenue to the US because this taxation raises very little money in practice. Are you sure? These tax laws also collect money from US Citezens working as contractors for the US military over seas not just someone who has decided they would rather live in Europe for the rest of their lives. They are often paid 6 figures salaries and there are 10's if not 100's of thousands of them around the world esp. supporting the wars in Iraq and Afghanistan. I don't think you would find a lot of support for reducing their taxes to zero.

scott_karana 12y ago
They're being paid by a US employer in that case, and I suspect that they're not being taxed by the host country, since they're temporary residents. Wouldn't that pretty pretty easily distinguished from "employed by private UK company, pays UK taxes"?
- pmorici 12y ago
  No, the fact that the salary is paid by a US employer has nothing to do with it. The tests for the Forgein Earned Income Exclusion are where your "tax home" is which is determined by your place of physical employment and the number of days per year you spend outside of the US. So long as your tax home is in a foreign country and you spend at least 330 days outside the US you don't pay federal income taxes on your first This site explains the basics. It most definitely does apply to US contractors. http://www.hrblock.com/tax-answers/services/jsp/article.jsp?article_id=57458 http://www.hrblock.com/tax-answers/services/jsp/article.jsp?...
mahyarm 12y ago
In Canada, if your working for the canadian government in an embassy or similar in a foreign country, you are taxed according to canadian tax law. Same with temporary assignment abroad. I think the USA can continue taxing it's government soldiers in a similar fashion.

by pmorici 12y ago

scott_karana 12y ago

They're being paid by a US employer in that case, and I suspect that they're not being taxed by the host country, since they're temporary residents. Wouldn't that pretty pretty easily distinguished from "employed by private UK company, pays UK taxes"?

pmorici 12y ago
No, the fact that the salary is paid by a US employer has nothing to do with it. The tests for the Forgein Earned Income Exclusion are where your "tax home" is which is determined by your place of physical employment and the number of days per year you spend outside of the US. So long as your tax home is in a foreign country and you spend at least 330 days outside the US you don't pay federal income taxes on your first This site explains the basics. It most definitely does apply to US contractors. http://www.hrblock.com/tax-answers/services/jsp/article.jsp?article_id=57458 http://www.hrblock.com/tax-answers/services/jsp/article.jsp?...

mahyarm 12y ago

In Canada, if your working for the canadian government in an embassy or similar in a foreign country, you are taxed according to canadian tax law. Same with temporary assignment abroad. I think the USA can continue taxing it's government soldiers in a similar fashion.