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Latest revision as of 20:32, 20 September 2024
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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 any payment. Foreign residency or extended periods abroad of your tax payer is really a qualification to avoid double taxation.
Because belonging to the increasing tax rate better brackets, a reduction of taxable income to the higher bracket saves you more tax than exactly the same reduction at a lower segment. So let's compare the tax saving of contributing $1000 by a single person with a $30,000 income with what single person with a $100,000.
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