Need the scoop on earning income working for a Contractor in Iraq.
I do understand there are "time out of the USA" rules , etc.

I have been told both the first $90,000 is "tax free" and also that there is a exception for  Approved Iraq Service that goes well above the $90,000 rule.

Is the exception story correct?

Also , If the first $90,000 is tax free , does this also mean NO Social Security Tax , No FICA Tax , No Medicare/Medicade Tax , etc.  or does the tax free statues only apply to Federal Income Tax?

How about State Tax?  
I know each State will be diff , Anyone know if Alabama State Income is also Tax Free?

Thanks for all replys.

first $80 grand is tax free from what I was told by a KBR recruiter

state tax should be nixed, but YMMV

FICA medicare SS etc is still paid, you dont get out of that, just fed tax.(still a damn good deal)

I believe you have to be out of country for 330 days out 365.

Quoted: first $80 grand is tax free from what I was told by a KBR recruiter state tax should be nixed, but YMMV FICA medicare SS etc is still paid, you dont get out of that, just fed tax.(still a damn good deal)

Curious about what the KBR recruiter had to say.  What position, pay, etc.  Thanx