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  1. You need to determine what income earned overseas...

    You need to determine what income earned overseas is subject to U.S. taxes, and what is not. Look at the tax treaty if there is one.

    Then what you earned as wages is entered on Line #7 of the...
  2. U.S. citizens who have resided outside of the...

    U.S. citizens who have resided outside of the United States are STILL required to file an annual U.S. tax return and they can claim the same deduction as any living inside the United States.
    ...
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