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Let's change one more fact in our example: I give a $100 tip to the waitress, and also the waitress currently is my baby. If I give her the $100 bill at home, it's clearly a nontaxable contribution. Yet if I leave her with the $100 at her place of employment, the irs says she owes tax on it all. Why does the venue make an improvement?

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The increased foreign earned income exclusion, increased tax bracket income levels, and continuation of Bush era lower tax rates are all good news for everyone American expats. Tax rules for expats are development. Get the specialized help you have a need to file your return correctly and minimize your U.S. tax.

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