Foreign earned income exclusion a lower income taxpayer, even if the taxpayer is in a higher tax bracket. Foreign earned income exclusion The United States taxes citizens and residents on their worldwide income. Citizens and residents living and working outside the U.S. may be entitled to a foreign earned income exclusion that reduces taxable income. For 2017, the maximum exclusion is $102,100 per taxpayer, $103,900 for 2018 (future years indexed for inflation). In addition, the taxpayer may exclude housing expenses in excess of 16% of this maximum ($44.19 per day in 2015) but with limits. The exclusion is available only for wages or self-employment
Section 50C of the Isle of Man Income Tax Act 1970 Section 50C of the Isle of Man Income Tax Act 1970 Section 50C of the Isle of Man Income Tax Act 1970 is an Act of Tynwald (the Parliament of the Isle of Man) which created a new type of pension arrangement, adding to the Isle of Man’s existing local and international pension legislation. Pension schemes approved under 50C met the applicable HMRC regulations on Qualifying Recognised Overseas Pension Schemes (QROPS) until 5 April 2012 when the regulations changed. In the period following A-day, the new UK pension framework introduced by the Finance Act 2004 led many more British expatriates