Tax Form 673

[ImAlan]

I am a U. S. Citizen, resident of Texas, retired Military and working overseas in Iraq. I have a question on my tax liability after having signed and turned in to my employer Tax Form 673 Statement for Claiming Exemption From Withholding on Foreign Earned Income. I've paid taxes on my income since arriving here 15 Dec 08. Will I owe more taxes, or have I paid enough. Also, since I am tax exempt by working overseas, is it a good thing to use Tax Form 673, and have your employer not withhold your Federal Taxes or am I still going to have to pay?
Thank you for your time, and I look forward to hearing from you!
Alan

 

[davew128]

Your income is not exempt. Your wages may be excluded (up to a point) from taxation, but whether you should continue to have no withholding is a decision you need to make by looking at what your final tax result might look like.