From: Peoria Il

Dear TaxMama,

I am a civilian Deparement of Defense badged employee working in a combat zone in Iraq.

Do I fall under military guidelines for tax exemption without having to do my 330 days out of country?

Thanks,
Robert

 

Dear Robert,

Isn't that SOOOOOOOO awful?

No, you don't.

There was some Congressman who trying to get legislation to give the same treatment to civilian workers, operating under the same dangerous conditions as the military. But, so far, I haven't heard of any such legislation passing.

Meanwhile, it's 330 days..or nothing.

Remember, the 330 days can include days that happen in the next tax year.

For instance - you're there from June - Dec of 2004. But, if you're still there in 2005, just put your tax return on extension until August 15th - and you've qualified for the 330 days residency.

Of course, you'll only be able to exclude 50% of the total foreign income allowance. But that's still worth filing later.

Meanwhile, I do hope you're getting hazard pay. And saving up all the money.

Best Wishes,
Eva Rosenberg, MBA, EA