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How excluded foreign income pushes you into a higher bracket

February 19, 2009

If you work overseas most of the year, the U.S. tax law allows you a foreign earned income exclusion. While most or all of your foreign earned income may not be taxable in the U.S., it can still push you into a higher bracket. William Perez explains at About.com:Tax Planning:

Any taxable income in the U.S. will be taxed starting at the tax bracket that would apply had the foreign exclusion not been claimed.

Follow the link for a full explanation.

Tags: Foreign Earned Income.William Perez.

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