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For together with higher incomes, the top tax rate was increased to 40.6% These limits are determined with the foreign earned income exclusion. Conversely, earned income abroad, and second income from foreign securities, rental, or anything abroad, can be excluded from U.S. taxable income, or foreign taxes paid thereon, should be employed as credits against You.S. taxes due. Moreover, foreign source wages are for services performed away from U.S. If one resides abroad and works for a company abroad, services performed for the company (work) while traveling on business in the U.S.

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