Originally Posted by
Cargo Pirate
bluejuice:
BJ,
You are way off on your guestimates. Your tax rate overseas is based on AGI. AGI=gross income-exclusion-rent-living expenses. My AGI overseas with a 155 gross was about 30K which put me in the 15% bracket. I always paid less than 2K in federal tax!
CP
See the section about deductions. Also, see the URL below regarding rent and living expenses.
Please read the following URL, it may answer some questions y'all have.
http://www.irs.gov/publications/p54/index.html