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No wonder everyone keeps invading you! The answer, of course, is no! The galaxy is teeming with life. Aliens populate every corner of the universe, and many have visited our humble little planet Sitting in the Gamemaster's chair can be the most daunting job in roleplaying games. It is also the most rewarding. This book is here to help you get the most out of the experience.

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With detailed information on all the allies, enemies, aliens and gadgets that he encounters, as well as examining each of his adventures, the book contains a wealth of material for the Doctor Who: Adventures in Time and Space RPG, and is also a fact-packed resource for fans With detailed information on all the allies, enemies, aliens and gadgets that he encounters, as well as examining each of his adventures, the book contains a wealth of material for the Doctor Who: Adventures in Time and Space RPG , and is also a fact-packed resource For more information on how a specific agreement affects self-employed persons, see Bilateral Social Security Totalization Agreements in chapter 2.

If your self-employment earnings should be exempt from foreign social security tax and subject only to U. The certificate will establish your exemption from the foreign social security tax. You can request a certificate of coverage online at SSA. The COVID virus has caused a global health emergency that has prompted the creation of various types of tax relief applicable to employees and self-employed individuals. The deferral of self-employment tax payments and the credits for sick and family leave, both available for certain self-employed individuals, are discussed, later.

Section of the CARES Act permits self-employed individuals to defer payment of a portion of their self-employment tax until and For more information, see Schedule SE Form and its instructions. Sections and of the Families First Coronovirus Response Act FFCRA created two credits against income tax for eligible self-employed individuals who were unable to work during the period April 1, , through December 31, , due to conditions related to the coronavirus.

Both credits are calculated and reported on the new Form For more information, see new Form , Part I, and its instructions. You may be entitled to claim the credit for family leave if you were unable to perform services as a self-employed individual because of certain coronavirus-related care you provided to a son or daughter under the age of For more information, see new Form , Part II, and its instructions.

Who qualifies for the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction;. If you meet certain requirements, you may qualify for the foreign earned income and foreign housing exclusions and the foreign housing deduction.

In addition, you can exclude or deduct certain foreign housing amounts. You may also be entitled to exclude from income the value of meals and lodging provided to you by your employer. See Exclusion of Meals and Lodging , later. To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must meet all three of the following requirements.

If you are a nonresident alien married to a U. For information on making the choice, see the discussion in chapter 1 under Nonresident Alien Spouse Treated as a Resident. The minimum time requirements for bona fide residence and physical presence can be waived if you must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country.

This is fully explained under Waiver of Time Requirements , later. See Figure 4-A and information in this chapter to determine if you are eligible to claim either exclusion or the deduction.

Due to the global health emergency caused by COVID, you may be eligible for a waiver of the minimum time requirements. To qualify for the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, your tax home must be in a foreign country throughout your period of bona fide residence or physical presence abroad.

Your tax home is the general area of your main place of business, employment, or post of duty, regardless of where you maintain your family home. Your tax home is the place where you are permanently or indefinitely engaged to work as an employee or self-employed individual.

If you do not have a regular or main place of business because of the nature of your work, your tax home may be the place where you regularly live. If you have neither a regular or main place of business nor a place where you regularly live, you are considered an itinerant and your tax home is wherever you work. Armed Forces in an area designated as a combat zone. See Service in a combat zone , later.

Otherwise, if your abode is in the United States, you will not meet the tax home test and cannot claim the foreign earned income exclusion. The location of your abode is based on where you maintain your family, economic, and personal ties. Your abode is not necessarily in the United States merely because you maintain a dwelling in the United States, whether or not your spouse or dependents use the dwelling. Your abode is also not necessarily in the United States while you are temporarily in the United States; however, these factors can contribute to your having an abode in the United States.

You return to your family residence in the United States during your off periods. For several years, you were a marketing executive with a producer of machine tools in Toledo, Ohio.

In November of last year, your employer transferred you to London, England, for a minimum of 18 months to set up a sales operation for Europe. Before you left, you distributed business cards showing your business and home addresses in London. You kept ownership of your home in Toledo but rented it to another family.

You placed your car in storage. In November of last year, you moved your spouse, children, furniture, and family pets to a home your employer rented for you in London. Your entire family got library cards for the local public library.

You and your spouse opened bank accounts with a London bank and secured consumer credit. You joined a local business league and both you and your spouse became active in the neighborhood civic association and worked with a local charity. Your abode is in London for the time you live there. You satisfy the tax home test in the foreign country. Armed Forces can qualify as having a tax home in a foreign country, even if they have an abode within the United States.

Summary: This flowchart is used to determine if the taxpayer can claim any foreign exclusions or deductions. Are you a citizen or national of a country with which the United States has an income tax treaty in effect?

Were you a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year? Were you physically present in a foreign country or countries for at least full days during any period of 12 consecutive months?

You CANNOT claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction. You CAN claim the foreign earned income exclusion and the foreign housing exclusion or the foreign housing deduction. Footnote: Foreign housing exclusion applies only to employees. Foreign housing deduction applies only to the self-employed.

The location of your tax home often depends on whether your assignment is temporary or indefinite. If your new tax home is in a foreign country and you meet the other requirements, your earnings may qualify for the foreign earned income exclusion.

If you expect your employment away from home in a single location to last, and it does last, for 1 year or less, it is temporary unless facts and circumstances indicate otherwise.

If you expect it to last for 1 year or less, but at some later date you expect it to last longer than 1 year, it is temporary in the absence of facts and circumstances indicating otherwise until your expectation changes. Once your expectation changes, it is indefinite. To meet the bona fide residence test or the physical presence test, you must live in or be present in a foreign country. A foreign country includes any territory under the sovereignty of a government other than that of the United States.

The term "foreign country" includes the country's airspace and territorial waters, but not international waters and the airspace above them. It also includes the seabed and subsoil of those submarine areas adjacent to the country's territorial waters over which it has exclusive rights under international law to explore and exploit the natural resources.

Virgin Islands, and American Samoa. For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, the terms "foreign," "abroad," and "overseas" refer to areas outside the United States and those areas listed or described in the previous sentence. Residence or presence in a U. You may, however, qualify for an exclusion of your territory income on your U.

There is a territory exclusion available to individuals who are bona fide residents of American Samoa for the entire tax year. Gross income from sources within American Samoa may be eligible for this exclusion. Income that is effectively connected with the conduct of a trade or business within American Samoa may also be eligible for this exclusion. Use Form to figure the exclusion. An exclusion will be available to residents of Guam and the Commonwealth of the Northern Mariana Islands if, and when, new implementation agreements take effect between the United States and those territories.

Residents of Puerto Rico and the U. Generally, if you are a U. However, you are subject to U. In figuring your U. You meet the bona fide residence test if you are a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year.

You can use the bona fide residence test to qualify for the exclusions and the deduction only if you are either:. You do not automatically acquire bona fide resident status merely by living in a foreign country or countries for 1 year. The length of your stay and the nature of your job are only two of the factors to be considered in determining whether you meet the bona fide residence test.

To meet the bona fide residence test, you must have established a bona fide residence in a foreign country. Your domicile is your permanent home, the place to which you always return or intend to return. You could have your domicile in Cleveland, Ohio, and a bona fide residence in Edinburgh, Scotland, if you intend to return eventually to Cleveland. The fact that you go to Scotland does not automatically make Scotland your bona fide residence.

But if you go to Scotland to work for an indefinite or extended period and you set up permanent quarters there for yourself and your family, you have probably established a bona fide residence in a foreign country, even though you intend to return eventually to the United States.

You are clearly not a resident of Scotland in the first instance. However, in the second, you are a resident because your stay in Scotland appears to be permanent. If your residency is not as clearly defined as either of these illustrations, it may be more difficult to decide whether you have established a bona fide residence. Questions of bona fide residence are determined according to each individual case, taking into account factors such as your intention, the purpose of your trip, and the nature and length of your stay abroad.

To meet the bona fide residence test, you must show the IRS that you have been a bona fide resident of a foreign country or countries for an uninterrupted period that includes an entire tax year. The IRS decides whether you are a bona fide resident of a foreign country largely on the basis of facts you report on Form The IRS cannot make this determination until you file Form Whether a treaty prevents you from becoming a bona fide resident of a foreign country is determined under all provisions of the treaty, including specific provisions relating to residence or privileges and immunities.

You may be a bona fide resident of the United Kingdom. You are exempt from Swiss taxation on the salary or wages paid to you by the United Nations. To meet the bona fide residence test, you must reside in a foreign country or countries for an uninterrupted period that includes an entire tax year.

An entire tax year is from January 1 through December 31 for taxpayers who file their income tax returns on a calendar year basis. During the period of bona fide residence in a foreign country, you can leave the country for brief or temporary trips back to the United States or elsewhere for vacation or business. To keep your status as a bona fide resident of a foreign country, you must have a clear intention of returning from such trips, without unreasonable delay, to your foreign residence or to a new bona fide residence in another foreign country.

You arrived with your family in Lisbon, Portugal, on November 1, Your assignment is indefinite, and you intend to live there with your family until your company sends you to a new post. You immediately established residence there. You spent April of at a business conference in the United States.

Your family stayed in Lisbon. Immediately following the conference, you returned to Lisbon and continued living there. On January 1, , you completed an uninterrupted period of residence for a full tax year , and you meet the bona fide residence test. Assume the same facts as in Example 1, except that you transferred back to the United States on December 13, You may, however, qualify for the foreign earned income exclusion or the housing exclusion or deduction under the physical presence test discussed later.

Once you have established bona fide residence in a foreign country for an uninterrupted period that includes an entire tax year, you are a bona fide resident of that country for the period starting with the date you actually began the residence and ending with the date you abandon the foreign residence.

Your period of bona fide residence can include an entire tax year plus parts of 2 other tax years. You were a bona fide resident of Singapore from March 1, , through September 14, On September 15, , you returned to the United States. Since you were a bona fide resident of a foreign country for all of , you were also a bona fide resident of a foreign country from March 1, , through the end of and from January 1, , through September 14, If you are assigned from one foreign post to another, you may or may not have a break in foreign residence between your assignments, depending on the circumstances.

You were a resident of Pakistan from October 1, , through November 30, On December 1, , you and your family returned to the United States to wait for an assignment to another foreign country. Your household goods were also returned to the United States. Your foreign residence ended on November 30, , and did not begin again until after you were assigned to another foreign country and physically entered that country.

You may, however, qualify for the foreign earned income exclusion or the housing exclusion or deduction discussed under Physical Presence Test , later.

Assume the same facts as in Example 1, except that upon completion of your assignment in Pakistan you were given a new assignment to Turkey. On December 1, , you and your family returned to the United States for a month's vacation. On January 2, , you arrived in Turkey for your new assignment.

You meet the physical presence test if you are physically present in a foreign country or countries full days during a period of 12 consecutive months. Any U. The physical presence test is based only on how long you stay in a foreign country or countries. Generally, to meet the physical presence test, you must be physically present in a foreign country or countries for at least full days during a month period.

You can count days you spent abroad for any reason. You can be on vacation. You can be physically present in a foreign country or countries for less than full days and still meet the physical presence test if you are required to leave a country because of war or civil unrest. See Waiver of Time Requirements , later. A full day is a period of 24 consecutive hours, beginning at midnight. You leave the United States for France by air on June You arrive in France at a.

Your first full day of physical presence in France is June If, in traveling from the United States to a foreign country, you pass over a foreign country before midnight of the day you leave, the first day you can count toward the day total is the day following the day you leave the United States.

You leave the United States by air at a. You pass over western Africa at p. Your first full day in a foreign country is June You can move about from one place to another in a foreign country or to another foreign country without losing full days.

If any part of your travel is not within any foreign country and takes less than 24 hours, you are considered to be in a foreign country during that part of travel. You leave Ireland by air at p. Your trip takes less than 24 hours and you lose no full days. You leave Norway by ship at p.

If you remain in Portugal, your next full day in a foreign country is July 9. You are treated as traveling over areas not within any foreign country. Figure 4-B. Summary: This figure illustrates Example 2 under "How to figure the month period" in the text. There are four rules you should know when figuring the month period.

Your month period can begin with any day of the month. It ends the day before the same calendar day, 12 months later. Your month period must be made up of consecutive months. Any month period can be used if the days in a foreign country fall within that period. You can choose the month period that gives you the greatest exclusion. In determining whether the month period falls within a longer stay in the foreign country, month periods can overlap one another. You are a construction worker who works on and off in a foreign country over a month period.

You might pick up the full days in a month period only during the middle months of the time you work in the foreign country because the first few and last few months of the month period are broken up by long visits to the United States. You work in New Zealand for a month period from January 1, , through August 31, , except that you spend 28 days in February and 28 days in February on vacation in the United States. You are present in New Zealand for at least full days during each of the following two month periods: January 1, — December 31, , and September 1, — August 31, By overlapping the month periods in this way, you meet the physical presence test for the whole month period.

See Figure 4-B. Both the bona fide residence test and the physical presence test contain minimum time requirements. The minimum time requirements can be waived, however, if you must leave a foreign country because of war, civil unrest, or similar adverse conditions in that country. You must be able to show that you could have reasonably expected to meet the minimum time requirements if not for the adverse conditions.

To qualify for the waiver, you must actually have your tax home in the foreign country and be a bona fide resident of, or be physically present in, the foreign country on or before the beginning date of the waiver.

Early in , the IRS will publish in the Internal Revenue Bulletin a list of the only countries that qualify for the waiver for and the effective dates. If you left one of the countries on or after the date listed for each country, you can meet the bona fide residence test or physical presence test for without meeting the minimum time requirement. However, in figuring your exclusion, the number of your qualifying days of bona fide residence or physical presence includes only days of actual residence or presence within the country.

The countries and the respective dates that qualified for the waiver in are listed in Revenue Procedure The COVID virus has caused a global health emergency that has prompted the Department of the Treasury and the Internal Revenue Service to provide a waiver related to the minimum time requirements for the foreign earned income exclusion.

Another foreign country on or after February 1, , but on or before July 15, ; you may still be able to meet requirements of the bona fide residence test or physical presence test for or for purposes of determining the foreign earned income exclusion and housing exclusion or deduction.

If you are claiming this waiver for tax year , enter "Revenue Procedure " across the top margin of your Form , and attach it to your Form or SR income tax return. If you are present in a foreign country in violation of U. Income that you earn from sources within such a country for services performed during a period of violation does not qualify as foreign earned income.

Your housing expenses within that country or outside that country for housing your spouse or dependents while you are in violation of the law cannot be included in figuring your foreign housing amount. At the time this publication was released, the only country to which travel restrictions applied during was Cuba. However, individuals working at the U. Personal service income earned by individuals at the base is eligible for the foreign earned income exclusion, provided the other requirements are met.

To claim the foreign earned income exclusion, the foreign housing exclusion, or the foreign housing deduction, you must have foreign earned income. Foreign earned income is generally income you receive for services you perform during a period in which you meet both of the following requirements.

The value of meals and lodging that you exclude from your income because the meals and lodging were furnished for the convenience of your employer. Pension or annuity payments you receive, including social security benefits see Pensions and annuities , later. Pay you receive as an employee of the U. See U. Government Employees , later. Amounts you include in your income because of your employer's contributions to a nonexempt employee trust or to a nonqualified annuity contract.

Payments you receive after the end of the tax year following the tax year in which you performed the services that earned the income. This is pay for personal services performed, such as wages, salaries, or professional fees. The list that follows classifies many types of income into three categories. The column headed Variable Income lists income that may fall into either the earned income category, the unearned income category, or partly into both.

For more information on earned and unearned income, see Earned and Unearned Income , later. In addition to the types of earned income listed, certain noncash income and allowances or reimbursements are considered earned income. The fair market value of property or facilities provided to you by your employer in the form of lodging, meals, or use of a car is earned income.

Earned income includes allowances or reimbursements you receive, such as the following amounts. Reimbursement for moving or moving allowance unless excluded from income as discussed later in Reimbursement of employee expenses under Earned and Unearned Income. The source of your earned income is the place where you perform the services for which you received the income. Foreign earned income is income you receive for working in a foreign country. Where or how you are paid has no effect on the source of the income.

For example, income you receive for work done in Austria is income from a foreign source even if the income is paid directly to your bank account in the United States and your employer is located in New York City. Your employment contract did not indicate that you were entitled to these allowances only while outside the United States. You work a 5-day week, Monday through Friday. After subtracting your vacation, you have a total of workdays in the year. You worked in the United States during the year for 6 weeks 30 workdays.

The following shows how to figure the part of your income that is for work done in Canada during the year. Earned income was defined earlier as pay for personal services performed. Some types of income are not easily identified as earned or unearned income. Some of these types of income are further explained here.

Income from a business in which capital investment is an important part of producing the income may be unearned income. If you are a sole proprietor or partner and your personal services are also an important part of producing the income, the part of the income that represents the value of your personal services will be treated as earned income.

If you have no net profits, the part of your gross profit that represents a reasonable allowance for personal services actually performed is considered earned income. You invest in a partnership based in Cameroon that is engaged solely in selling merchandise outside the United States.

You perform no services for the partnership. Assume that in Example 1 you spend time operating the business. The entire amount of business income is earned income. You and Lou Green are management consultants and operate as equal partners in performing services outside the United States. Because capital is not an income- producing factor, all the income from the partnership is considered earned income.

The salary you receive from a corporation is earned income only if it represents a reasonable allowance as compensation for work you do for the corporation. Any amount over what is considered a reasonable salary is unearned income. You perform no work or service of any kind for the corporation. You may have earned income if you disposed of stock that you got by exercising a stock option granted to you under an employee stock purchase plan.

If your gain on the disposition of stock you got by exercising an option is treated as capital gain, your gain is unearned income. However, if you disposed of the stock less than 2 years after you were granted the option or less than 1 year after you got the stock, part of the gain on the disposition may be earned income.

It is considered received in the year you disposed of the stock and earned in the year you performed the services for which you were granted the option. Any part of the earned income that is due to work you did outside the United States is foreign earned income. For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, amounts received as pensions or annuities are unearned income.

Royalties from the leasing of oil and mineral lands and patents are generally a form of rent or dividends and are unearned income. Royalties received by a writer are earned income if they are received:. For the transfer of property rights of the writer in the writer's product, or. Generally, rental income is unearned income. Larry Smith, a U. On the other hand, if he just owns the rooming house and performs no personal services connected with its operation, except perhaps making minor repairs and collecting rents, none of his net income from the house is considered earned income.

It is all unearned income. If you are engaged in a professional occupation such as a doctor or lawyer , all fees received in the performance of these services are earned income. Income you receive from the sale of paintings you created is earned income. Any portion of a scholarship or fellowship grant that is paid to you for teaching, research, or other services is considered earned income if you must include it in your gross income. If the payer of the grant is required to provide you with a Form W-2, these amounts will be listed as wages.

Certain scholarship and fellowship income may be exempt under other provisions. If you receive fringe benefits in the form of the right to use your employer's property or facilities, the fair market value of that right is earned income.

Fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being required to buy or sell, and both having reasonable knowledge of all the necessary facts. You are privately employed and live in Japan all year.

The house is not provided for your employer's convenience. You report on the calendar-year, cash basis. If you are reimbursed under an accountable plan defined below for expenses you incur on your employer's behalf and you have adequately accounted to your employer for the expenses, do not include the reimbursement for those expenses in your earned income.

The expenses for which you are reimbursed are not considered allocable related to your earned income. If expenses and reimbursement are equal, there is nothing to allocate to excluded income.

If expenses are more than the reimbursement, the unreimbursed expenses are considered to have been incurred in producing earned income and must be divided between your excluded and included income. See chapter 5. If the reimbursement is more than the expenses, no expenses remain to be divided between excluded and included income and the excess reimbursement must be included in earned income.

These rules do not apply to the following individuals. Employees who have arrangements with their employers under which taxes are not withheld on a percentage of the commissions because the employers consider that percentage to be attributable to the employees' expenses.

An accountable plan is a reimbursement or allowance arrangement that includes all three of the following rules. The expenses covered under the plan must have a business connection. The employee must adequately account to the employer for these expenses within a reasonable period of time. The employee must return any excess reimbursement or allowance within a reasonable period of time. In most cases, reimbursement of moving expenses will be earned income. This section discusses reimbursements that must be included in earned income.

The rules for determining when the reimbursement is considered earned or where the reimbursement is considered earned may differ somewhat from the general rules previously discussed.

Although you receive the reimbursement in one tax year, it may be considered earned for services performed, or to be performed, in another tax year. You must report the reimbursement as income on your return in the year you receive it, even if it is considered earned during a different year.

Moving expenses are only deductible for members of the U. Armed Forces who move pursuant to a military order and incident to a permanent change of station. Therefore, the exclusion from earned income for qualified moving expenses is, generally, only available to members of the U.

If you move from the United States to a foreign country, your moving expense reimbursement is generally considered pay for future services to be performed at the new location. The reimbursement is considered earned solely in the year of the move if you qualify for the exclusion for a period that includes at least days during that tax year.

If you are neither a bona fide resident of nor physically present in a foreign country or countries for a period that includes days during the year of the move, a portion of the reimbursement is considered earned in the year of the move and a portion is considered earned in the year following the year of the move. To figure the amount earned in the year of the move, multiply the reimbursement by a fraction.

The numerator top number is the number of days in your qualifying period that fall within the year of the move, and the denominator bottom number is the total number of days in the year of the move. The difference between the total reimbursement and the amount considered earned in the year of the move is the amount considered earned in the year following the year of the move.

The part earned in each year is figured as shown in the following example. You were told in October that you were being transferred to a foreign country. You arrived in the foreign country on December 15, , and you are a bona fide resident for the remainder of and all of Because you did not qualify for the exclusion under the bona fide residence test for at least days in the year of the move , the reimbursement is considered pay for services performed in the foreign country for both and You figure the part of the reimbursement for services performed in the foreign country in by multiplying the total reimbursement by a fraction.

The fraction is the number of days during which you were a bona fide resident in the year of the move divided by The remaining part of the reimbursement is for services performed in the foreign country in This computation is used only to determine when the reimbursement is considered earned. You would include the amount of the reimbursement in income in , the year you received it. If you move between foreign countries, any moving expense reimbursement that you must include in income will be considered earned in the year of the move if you qualify for the foreign earned income exclusion for a period that includes at least days in the year of the move.

If you move to the United States, the moving expense reimbursement that you must include in income is generally considered to be U. However, if under either an agreement between you and your employer or a statement of company policy that is reduced to writing before your move to the foreign country, your employer will reimburse you for your move back to the United States regardless of whether you continue to work for the employer, the includible reimbursement is considered compensation for past services performed in the foreign country.

The includible reimbursement is considered earned in the year of the move if you qualify for the foreign earned income exclusion for a period that includes at least days during that year.

Otherwise, you treat the includible reimbursement as received for services performed in the foreign country in the year of the move and the year immediately before the year of the move.

See the discussion under Move from United States to foreign country , earlier, to figure the amount of the includible reimbursement considered earned in the year of the move. The amount earned in the year before the year of the move is the difference between the total includible reimbursement and the amount earned in the year of the move.

You retired from employment with your employer on March 31, , and returned to the United States on the same day, after having been a bona fide resident of the foreign country for several years. A written agreement with your employer entered into before you went abroad provided that you would be reimbursed for your move back to the United States.

Because you were not a bona fide resident of a foreign country or countries for a period that included at least days in the year of the move , the includible reimbursement is considered pay for services performed in the foreign country for both and You figure the part of the moving expense reimbursement for services performed in the foreign country for by multiplying the total includible reimbursement by a fraction.

The fraction is the number of days of foreign residence during the year 91 January 1 to March 31, , equals 91 days divided by the number of days in the year The remaining part of the includible reimbursement is for services performed in the foreign country in You report the amount of the includible reimbursement in , the year you received it.

In this example, if you met the physical presence test for a period that included at least days in , the moving expense reimbursement would be considered earned entirely in the year of the move.

If you are reimbursed for storage expenses, the reimbursement is for services you perform during the period of time for which the storage expenses are incurred.

For purposes of the foreign earned income exclusion, the foreign housing exclusion, and the foreign housing deduction, foreign earned income does not include any amounts paid by the United States or any of its agencies to its employees. This includes amounts paid from both appropriated and nonappropriated funds.

The following organizations and other organizations similarly organized and operated under U. Government employee paid by a U.

If you have questions about whether you are an employee or an independent contractor, get Pub. If you are an employee of the American Institute in Taiwan, allowances you receive are exempt from U. Cost-of-living and foreign-area allowances paid under certain acts of Congress to U.

Post differentials are wages that must be included in gross income, regardless of the act of Congress under which they are paid. Government employees abroad. Your family, for this purpose, includes only your spouse and your dependents. The value of lodging includes the cost of heat, electricity, gas, water, sewer service, and similar items needed to make the lodging fit to live in.

Generally, the business premises of your employer is wherever you work. For example, if you work as a housekeeper, meals and lodging provided in your employer's home are provided on the business premises of your employer. Similarly, meals provided to cowhands while herding cattle on land leased or owned by their employer are considered provided on the premises of their employer.

Whether meals or lodging are provided for your employer's convenience must be determined from all the facts and circumstances. Meals furnished at no charge are considered provided for your employer's convenience if there is a good business reason for providing them, other than to give you more pay. Lodging is provided as a condition of employment if you must accept the lodging to properly carry out the duties of your job.