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Latest revision as of 01:08, 14 August 2026


There is much confusion about what constitutes foreign earned income with respect to the residency location, the location where the work or service is performed, and supply of the salary or fee payment. Foreign residency or extended periods abroad from the tax payer is a qualification to avoid double taxation.

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Because of your increasing tax rate of upper brackets, a reduction of taxable income within the higher bracket saves you more tax than the same reduction for any lower bracket. So let's compare the tax saving of contributing $1000 by one person with a $30,000 income with a single person with a $100,000.

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