Hello, I've been a contractor overseas since Oct. 5th 2009. My plan all along was to work overseas(outside the US) for at least 345 days. Now I'm being laid off and my return home to the US is forcing me to come home at around the 300 day mark. Which is short of the 330 days out of 365 required by the IRS for my exemption. The questions I have are as follows.

1) Will I be required to pay both state and federal taxes on the monies earn outside the US?

2) Are there any deductions I can make from my travels overseas? ie Plane tickets, lodging and so forth?

3) Does anyone know a decent in the Sarasota/Tampa Florida area?


Thank you for any help you may have in advance, Chance

" Will I be required to pay both state and federal taxes on the monies earn outside the US?"---> Yes. You can't claim the foreign earned income exclusion; you would not qualify under both the bona fide residence test (I mean because your bona fide residence in the foreign country not only it didn't last more than a year but it did not include a full tax year) and Physical Presence Test( you must be physically present in a foreign country or countries for at least 330 full days during the 12-month period.)
You can claim a credit only for foreign taxes that are imposed on you by the foreign country( if applicable).

" Are there any deductions I can make from my travels overseas? ie Plane tickets, lodging and so forth?"--->Yes. There are; your travel expenses, as long as they are the ordinary and necessary expenses of traveling away from home for you job, in generally, you can deduct these expenses using Form 2106 or Form 2106-EZ and on Form 1040, Schedule A.