I am a PR living in San Jose. I have the following question:
Do I have to pay tax on income of US$60,000 for working in Hong Kong in 2007?
Thanks for your kind assistance in this matter.
Regards
Joseph

Yes. The U.S. is unique in that it taxes ALL world-wide income of its citizens and resident aliens, even when they earn it in another country.

You CAN exclude up to $85,000 of such income if you meet the criteria by filing Form 2555 with Form 1040.