Case Study 1: Qualifying Tax HomeJohn and Mary are both in the Armed Forces and have been permanently stationed in Germany since August 2012. Their tax home for the current year is Germany. Click here for an explanation. The tax home for members of the Armed Forces is the permanent duty station, either land-based or on a ship. This is true whether it is feasible or permissible for the taxpayers' family to live with them. Income from work abroad received from the U.S. Government as its employee does not qualify for the foreign earned income exclusion. |