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You probably have been earning income whereas dwelling abroad for greater than a yr, then you could qualify for the overseas earned income and overseas housing exclusions and the overseas housing deduction. It would allow you to exclude as much as $91,400 of international revenue for the 2009 tax yr. The requirements depend on which country you are residing in, how many days you’ve got been residing there, and your worldwide earnings. This credit could be especially helpful to taxpayers who is likely to be topic to double taxation (those that must pay taxes to both the U.S. government and their local tax authority). You should use the foreign revenue exclusion kind (IRS Kind 2555) to say this deduction, but make sure you communicate with a tax professional specializing in foreign revenue before sending off your return.