If you are a bona fide resident or if you are physically present for 330 days in a 12 month period, you probably qualify for the Foreign Earned Income Exclusion/Credit. Use Form 2555 to receive the credit. It will allow you to exclude up to $99,200 from U S taxation. This amount is pro-rated if you are not in the country for the full tax year. Once you determine how much you can exclude, you would then need to calculate your tax liability on your remaining income. Note that the income will be taxed at a rate that it would have been if you did not get the exclusion. In other words, assume you exclude the full amount, but your taxable income is $50,000. That amount will be taxed at the bracket that includes $149,200.