Iraq security jobs?

Question

if a person is out of country over 330 days his salary up to $80 grand is tax free, but what about bonus he recieves from the completion of a contract?

Answer 1

The cap is currently $82,500 and no, anything over that amount is taxable if received in that 330 (365 total) days.

Answer 2

As another said any amount over the current cap is taxable. But you have to weigh how much you would have been taxed on 80K if you were stateside. The taxes on the bounus are not going to take all of it. If you sit down and think about it in the end you make out...... bigtime.

Other than that much depends on what you do and if you are able to negotiate your contract. Instead of a high bonus you could maybe get a higher per diem....... still income but classed differently. Or say a paid flight home or to say Australia for a vacation. It gets complicated but much can be doable at contract signing. If you have 401K you put in the max so a portion is not taxable. Some of the money you get can go into a Roth or investing enough w. a bank so you get a nice rate.

Point is ...... long view.

You still have to pay but you can pay a tad less..... later.

Answer 3

taxable, if over the 80K threshhold.