There is much confusion about what constitutes foreign earned income with respect to the residency location, the location where the work or service is performed, and supply of the salary or fee any payment. Foreign residency or extended periods abroad of the tax payer is really a qualification to avoid double taxation. 10% (8.55% for healthcare and a particular.45% Medicare to General Revenue) for my employer and me is $15,612.80 ($7,806.40 each), and less than both currently pay now ($1,131....