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Revision as of 03:13, 12 November 2024
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 pay out. Foreign residency or extended periods abroad of the tax payer can be a qualification to avoid double taxation.
Getting a tax-deduction allows your contribution to be subtracted out of the taxable income. A lesser taxable income means you pay less taxes in the whole year you support your Individual retirement account. So you end up a lot more in your IRA using less reduction in your pocket than your contribution.
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