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I have lived out of the US for about 8 years. My salary has always been under 70k, so I haven't had to pay US taxes (although I've paid a lot in the country I live in). However, this year my salary will be much higher, and I will have to pay money to Uncle Sam in addition to what I pay in my country of residence. Does anyone know how I can minimize my tax burden in the US legally? Are there any books/publications available? Does it pay to use a tax advisor? Where should I begin? Thanks for your help.
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<<I have lived out of the US for about 8 years. My salary has always been under 70k, so I haven't had to pay US taxes (although I've paid a lot in the country I live in).>>

Just remember that the amount of the foreign earned income exclusion has been raised to $76,000 in year 2000, and will continue to increase in 2001 and again in 2003.

<< However, this year my salary will be much higher, and I will have to pay money to Uncle Sam in addition to what I pay in my country of residence. Does anyone know how I can minimize my tax burden in the US legally?>>

One way would be to take full advantage of the foreign tax credit. If you pay foreign tax on income also taxed by the US, you are allowed to take a credit on your US return for the foreign taxes paid. That might be of considerable assistance.

<< Are there any books/publications available?>>

Yup...read IRS Publications 593, 514, and 909 for a pretty good rundown of your situation and some of the things that you need to be aware of.

<< Does it pay to use a tax advisor?>>

Many people thing so. International tax issues can get pretty complicated. If you screw 'em up, it could cost you a pretty penny. A qualified tax pro with international experience could be worth his/her weight in gold. Talk to some of your friends and business associates who are in the same boat as you. They may give you some names of tax pros that you might want to chat with.

TMF Taxes
Roy
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