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Here are the 4 best places to live — and work -2-


Provided by
Dow Jones
May 22, 2021 3:06 PM UTC
As an American, for instance, if you can prove tax residence in another country, you re eligible for several meaningful tax breaks. Proof generally means meeting the physical presence test, or living outside the U.S. for at least 330 days in a 12-month period. If you meet the test, this is what you gain:
Those are meaningful tax breaks that can improve your standard of living or allow you to ramp up your retirement savings by reducing what the IRS demands from your global income.
Locally, Panama operates a territorial tax system. That means you must report all income to Panama, but income you earn outside the country is not taxed. Again, that can be advantageous to those who want to amplify their lifestyle or ramp up contributions to their nest egg. ....

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What is the earned income credit? A refundable tax credit


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The earned income credit is a refundable tax credit i.e. a lump sum of money refunded to taxpayers by the IRS for those earning a low-to-moderate income.
For the 2020 tax year, the minimum credit is $538 and the maximum is $6,660. 
The amount of earned income credit you re eligible to receive will depend on your annual income and the number of qualifying children in your household. ....

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