History On The Federal Tax
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Basically, the irs recognizes that income earned abroad is taxed along with resident country, and the excluded from taxable income with the IRS if your proper forms are filled out. The source of the income salary paid for earned income has no bearing on whether end up being U.S. or foreign earned income, but rather where do the job or services are performed (as in the example of employee being employed by the Oughout.S. subsidiary abroad, and receiving his salary from the parent U.S.
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