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Discussion:Deductions/Exclusions Available for Civilian in Iraq

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Discussion Forum Index --> Basic Tax Questions --> Deductions/Exclusions Available for Civilian in Iraq


Discussion Forum Index --> Tax Questions --> Deductions/Exclusions Available for Civilian in Iraq

Callie5 (talk|edits) said:

16 February 2008
A new client has been referred to me. I am trying to prepare for our meeting. He is a civilian employee for a large government contractor (SAIC) who worked in the US Embassy in Iraq from mid February 2007 - Feb. 10, 2008. He told me he earned more than $ 300K+ (including hazardous duty pay/war zone pay) in W-2 income and understandably wants to take advantage of as many deductions and exclusions as possible. I haven't before worked with clients in this situation. I see there are some possible exclusions re income/housing on Form 2555. Given that the income exclusion maxes out at $ 85,700 that is only so helpful in this case. Any ideas on how best to assist this client in reducing his 2007 tax liability?

Riley2 (talk|edits) said:

17 February 2008
Tell him to enlist in the Army. The Sec. 112 exclusion is available to active duty members of the Armed Forces. Your client is eligible for the Sec. 911 foreign Earned income exclusion.

Belle (talk|edits) said:

February 17, 2008
Plus, if he enlists, he'll make a LOT less and wouldn't owe so much :-)

Lizzit (talk|edits) said:

17 February 2008
It sounds like he was there for less than a year. He can claim "temporarily away from home" expenses - read up the rules and regs in your Pub 17. If after reading the rules and regs you feel he would be allowed per diems for his meals while there, don't give him those dinky US per diems. He gets to use FOCONUS rates instead. FOCONUS is here: http://aoprals.state.gov/content.asp?content_id=184&menu_id=78

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