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Defenders of the IRS position would say it pops up to Section 61. The waitress provided a service for me, and I paid regarding it. Compensation for services is taxable. End of post.
B) Interest earned, despite the fact that paid, during a bond year, must be accrued at the end of the bond year and reported as taxable income for that calendar year in how the bond year ends.
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The increased foreign earned income exclusion, increased tax bracket income levels, and continuation of Bush era lower tax rates are excellent news for most American expats. Tax rules for expats are development. Get the professional help you really have to file your return correctly and minimize your U.S. tax.
