Here’s a rare taxpayer win on the foreign earned income exclusion. U.S. citizens who work overseas can exclude on 2017 returns up to $102,100 of their wages or self-employment income earned abroad if they can meet certain tests. A man worked in Iraq as a helicopter pilot. He had a home in Ala., where his wife lived and where he returned every two months. In Iraq, he lived in a company-provided home and spent his free time socializing, going out to eat and updating his living quarters. He intended to remain in Iraq until he retired. Despite the man’s ties to the U.S.,
the Tax Court said his tax home and residence are in Iraq (Linde, TC Memo. 2017-180).