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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4436
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I am a US expact working in Iraq. I have been here for 6 months

Resolved Question:

I am a US expact working in Iraq. I have been here for 6 months now but will probably get sent home soon due to the contract ending. I am aware of the physical presence test. But what if the job ends without being fired or quitting and I can't meet the 330 days out of country? I've heard rumors that your earns up to 91,500 is still excempt. Is that true?
Submitted: 4 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 4 years ago.

Dear Friend,

 

Yes, thats right. This is because, technically speaking, you establish Iraq as your 'tax home', i.e. a official place of employment. I will not elaborate here to create confusion, but YES, you can exclude up to USD 91,500 and they are exempt, which is best explained at http://taxplannercpa.com/WP/foreign-earned-income-exclusion/basics-of-the-foreign-earned-income-exclusion/

 

I am sure this would help...

Warm Regards,

Customer: replied 4 years ago.
what if I get sent home early, before 330 days? Will I have to pay taxes?
Expert:  Rakhi Vasavada replied 4 years ago.

Dear Friend,


No.. as I said, it will still remain exempt. Refer in detail to the link provided.. It WILL BE EXEMPT.

 

Hope this helps...

Warm Regards,

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