I earn over 100K and my legal address is in the state of Florida, however I've been living abroad for a over a year.
Hi, did your US company need to do something to enable this? If so, please refer me to some resource on this. Thanks
While your tax home may be FL (which doesn't tax personal income) if your residence is overseas you "may" qualify for the foreign earned income exclusion. Basically, on one of the screens after the W-2 entry screen you will select the option to indicate you earned this income while outside of the U.S., and then follow the prompts and instructions from there.
I know I qualify for the exclusion. Does this mean that any income taxed from my W2 will come back in form of a deduction when I file? For example, I earned 100K and was taxed 27K of my income. Will I be getting back that 27%?
Make the selection indicated above and read the screen you will be presented after you click the CONTINUE button twice.
I haven't received my W2 yet so I can't move forward with the step you just described. My question is if I have paid 25K+ in taxes for 2016 will the IRS return that amount if I qualify for the exclusion? Will I be getting a refund in the amount of roughly 25K?
It's impossible to answer your question at this time, because you haven't received your W-2 yet. But overall I would expect at least some of the income to meet the foreign earned tax exclusion.
If that is your ONLY income and ALL of your Foreign Earned Income qualifies to be excluded, yes, you will receive all of the Federal INCOME tax back when you file your tax return.
You will NOT get Social Security or Medicare taxes back.
If you have other income or part of your Foreign Earned Income does not qualify for the exclusion, that other income will now fall in higher tax brackets.