Gene E. Utterback, EA <eagent[at]alliancetax.com> wrote:
- quote -

If you are suggesting an exclusion of 80,000 of the
15,000,000 per kid, that's peanuts, and since the 15,000,000
is probably not earned income, the 80,000 would not qualify
for exclusion.

It seems to me if this is a US citizen collecting the
15,000,000 he might use a small portion of that to get some
senators and congresspeople to change the law to make these
rewards tax exempt.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

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"hfs2" <hfs2[at]yahoo.com> wrote:

- quote -


Define taxes - U. S. Federal or Iraqi? Assuming you mean U.
S. would depend on who collects the reward, wouldn't it.

If it was claimed by a U. S. Citizen the reward is taxable
income. But since the work was done in a foreign country if
it was a U. S. Citizen who collects they may be able to
exclude some income if they meet the other conditions.
However, if it was an Iraqi national that collects the
reward I don't think there is any basis for any tax
liability.

Gene E. Utterback, EA

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