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Julie's total exclusion is $94,079. To be with her American expat tax return she also gets to claim a personal exemption ($3,650) and standard deduction ($5,700). Thus, her taxable income is negative. She owes no U.S. charge.
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Three Year Rule - The tax arrears in question has turn out to be for a return that was due not less than three years in prior. You cannot file bankruptcy in 2007 and continue to discharge a 2006 due.
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