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

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?...