I was just curious if this is the way most people go if you are planning on not making the 330 cut off. I am gearing up for my first gig and just trying to figure some things out. Ive done research on the issue but I was kinda curious on how hard this is to do in astan. I didnt know if most people went this route and if so are there any major hurdles to jump through for the following tax year. or do most people just take the tax hit, Im single so I think its like 28% or so which makes my "future" salary right on the verge of being worth it. The contract I will hopefully be on (barring I pass the training course) is a year long but with several rotations home totaling 3 mo's or so. Any help is much appreciated.

You only have those options. My first suggestion would be call a good tax guy and get him on the issue before you get started on the gig. Tax done wrong will take the worth it right out. If you work a 1099 gig then 15 % off the top goes to self employment then 28-35% off the rest if you fail to qualify for the exemption . This year 92K is the exemption . It is worth the money to get a experienced tax guy to get you through the mine feild, especially if it is your first go around.

The key is not remaining in the US longer than 35 days in a 365 day period. That's the bottom line, unless you are A) considering filing that way regardless or b) speaking to a very well qualified tax attorney who can help you establish your expat status.

Typically, IIRC, bonafide residence won't be available to you unless you meet several circumstances.

I was glad when MOI placed work visas in our passports....

Talking to an INTERNATIONAL Tax Guy is important, in case you need to prove you weren't pretending to be there while actually being a paid actor at 29 Posies...

Keep daily expense records, print emails, air tickets, etc. too. Save 7 years...wash, rinse repeat. Most audits are 'resolved' when they see you have lots of well-organized evidence.

Qualified advice for the current tax year is vital. Pay for it. Keep a copy of the canceled check, too!

So do most of you guys just stay under the 35 day mark then? I am single so I guess I could just come home to the us for 8-9 of the 21 days on each of my 4 rotations home. I guess Im just asking what "most" people do, stay under the 35 day mark, get the bonafide resident status (if possible), or just take the tax hit and go over the 35 day mark. if my base pay is around 100 Im trying to decide to how get the most out of the year. Thanks

also how do I go about finding a good international tax guy, is that h&r block does or should I just thumb through the phonebook, I apologize if thats a ridiculous question but Im new to this and turbotax has done my taxes the last ten yrs

There is so much foul information floating around about the exemption. Talk to a tax guy AND a tax attorney, preferably ones who work together. There is also a walk-in IRS office (I am on a first name basis with the manager and the receptionist) with-in driving distance of my home. Together, they will show you the light.

I have been contracting since '04. I have never made the 330 day cutoff. I have taken the exemption EVERY YEAR, on a pro-rated basis. AND it's legal...and I have never even had a sniff of an audit. It's all in the paperwork and the proper forms.

The firm I use tells me that 95% of overseas contractors...AND their tax people, get it wrong. The IRS will never tell you when you have overpaid if they can help it. Remember that...

Have to agree with all above. To me the exemption is worth it (saved me a bunch in taxes over the years) and documentation is VERY important. Most of all get with a CPA and/or a lawyer that you trust and KNOWS the subject matter. What the IRS is looking for are "flags" that draw their attention.