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Julie's total exclusion is $94,079. On her American expat tax return she also gets declare a personal exemption ($3,650) and standard deduction ($5,700). Thus, her taxable income is negative. She owes no U.S. duty.

In addition, the exclusion is not the only good thing that multiplied. The income level by which each tax bracket applies was also increased for inflation.

Now, I'm hardly suggesting you go forth and entertain a life in criminal offence. Tax issues should be minor the actual spending quantity of jail. Frankly, it shouldn't be worth it, but it is at least somewhat and also humorous observe how brand new uses tax laws to get after illegal conduct.