I am investigating living overseas. The country that I'm considering has zero tax. I will be paid a salary, housing, car, school fees and flights in this package.

Will all these benefits be taxable? I understand that there is a tax exemption of $87,500 this year. These benefits will exceed that amount.

Also, in the country there is no free schooling, so it's not a really a benefit but more of a necessity. Under these circumstances is it considered income?

Thanks,

Macs:confused:

If your total worldwide income exceeds the filing requirement, you must file your U.S. tax return. On your return, you must report your world wide income. If you paid taxes in the foreign country, you will claim credit for taxes paid in the foreign country by filing Form 1116 or can file form 2555 Foreign Earned Income Exclusion.. Read: Your U.S. Tax Return: U.S. Citizen or Resident with Foreign Income (http://taxipay.blogspot.com/2008/03/us-citizen-or-resident-with-foreign.html)

Yes, you will be taxable on all amounts received. If you meet the requirement for the FEIE, you can exclude foreign earned income and a housing amount.