I’m thinking this is going to be a new feature here at The Paycheck Chronicles. Very often, I get asked questions to which I can not find the answers, or I have my own questions and I think that surely one of my readers knows the answer. So, I’m going to put them out here and hopefully y’all will be able to help other readers and me solve some of the pressing questions of military finances.
This week’s question was asked by Jenn, a reader who lives here in Italy with me. She asked if she could take advantage of the exemption on pay received while working for a US company but working outside the United States. IRS Form 2555, Foreign Earned Income, seems to apply to her situation as an individual contractor who lives overseas but works for a US company. However, the directions don’t specifically include or exclude the spouses of US military personnel who live overseas.
Well, I spent a significant amount of time researching and I can’t find anything that resembles a difinitive answer. Surely some of you have been in this situation. Were you able to take this income exclusion? How did you figure out that you could or could not? Are there any tricky little things that you learned?
Jenn and I thank you for your comments