Is there an executive order making civilian pay in iraq non-taxable while working with our troops?

Question

I have heard that a President Executive order has made income earned by U.S. civillian workers supporting the troops and effort in Iraq is not subject to current US income tax

Answer 1

Income derived in Iraq is not taxable in the US because the income was earned outside the territory of the US it is taxable in Iraq.

Answer 2

It is part of the federal tax code. I was over there as a contractor for 18 months and never saw a single dime taken out of checks. And I am looking to obtain another job there.

Of course, of the 50 convoys I was in, we were hit 7 times by IEDs killing 5 people. So there is a price to pay for not paying taxes.

Answer 3

Not sure if it's the same for civilians, but for military if you spend one day in the AOR (Iraq) for a pay period, the entire check is tax free. If you are being paid by an American company of the US govt, there are no taxes taken out by the US, your state of residence or Iraq. Civilian contractors are hired and paid by US companies not Iraq, so no taxes paid to Iraq.

Answer 4

It is just part of the tax code, any US citizen living and working for at least a year outside the US do not pay taxes on the money even if the money is transfered into the US.