Civilian Contractors, without any other status mentioned under ‘Eligible Clients,’ are not authorized for free tax preparation pursuant to Army Regulation 27-3, paragraph 2-5. Under this regulation tax preparation is included under other correspondence or documents which Civilian Contractors are not allowed.
Can a military contractor pay taxes in a combat zone?
As such, military contractors are not eligible to exclude income earned in a combat zone from their US expat taxes. But, they can use the FEIE if they qualify via the bona fide or physical presence tests, just like non-military expats. The IRS lists designated combat zones on their website, for your reference.
Can a military contractor use FEIE to avoid taxes?
As such, military contractors are not eligible to exclude income earned in a combat zone from their US expat taxes. But, they can use the FEIE if they qualify via the bona fide or physical presence tests, just like non-military expats.
Can a civilian contractor work in another country?
Therefore, civilian contractors working abroad are limited to the Physical Presence Test. Therefore you must closely track your time spent in the U.S. (whether for personal or business reasons) in order to secure the ability to exclude up to $100K from taxable income.
Can a contractor qualify for the foreign earned income exclusion?
Yes – contractors can certainly qualify for the Foreign Earned Income Exclusion (FEIE). However, in general, the nature of contractor employment terms does not allow using the Bona Fide Residence Test. Therefore, civilian contractors working abroad are limited to the Physical Presence Test.
What is qualified hazardous duty for civilian contractors?
The qualified hazardous duty area includes: The IRS has recently issued Memorandum Number: AM2009-0003 dealing with the application to the Foreign Earned Income Exclusion and the Combat Zone Exclusion to Civilian Contractors Working in Combat Zones. It outlines who may or may not be entitled to claim the FEIE.
