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Note: Mcdougal is not a CPA or tax professional. This article is for general information purposes, and should not be construed as tax points. Readers are strongly inspired to consult their tax professional regarding their personal tax situation.

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Example: Mary, an American citizen, is single and lives in Bermuda. She earns an income of $450,000. Part of Mary's income will be subject to U.S. taxes at the 39.6% tax rate.

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