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Conversely, earned income abroad, and residual income from foreign securities, rental, or stuff abroad, could be excluded from U.S. taxable income, or foreign taxes paid thereon, can be as credits against U.S. taxes due.

This offers us a combined total of $110,901, our itemized deductions of $19,349 and exemptions of $14,600 stay the same, giving us an overall taxable income of $76,952.

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