Can I claim exempt when working an overseas contract in the Middle East? I reside in south America and never go to the U.S., can I be exempt?

[DianeC958]

You can exclude up to $105,900 of your income from being taxed in the United States.  If your income is higher than that you can take a credit for any foreign tax you paid on the amount that exceeds the $105,900.

To take the exclusion go to

• Wages & Income
• Less Common Income
• Foreign Earned Income and Exclusion

To take the foreign tax credit go to 

• Deductions & Credits
• Estimates and Other Taxes Paid
• Foreign Taxes

Choosing the Foreign Earned Income Exclusion

@johnrdavila