U.S. citizens who lived most of the year in a foreign country and are considered to have their tax home in that country can qualify to exclude up to $82,400 of earned income—such as salaries, wages and commission—from U.S. taxable income. (Note: This exclusion does not apply to salaries earned by employees of the U.S. government and its agencies.) If you lived and worked abroad for most of 2006, use the Interview to see if any or all of your foreign income is tax-free.