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					Originally Posted by dlish  aren't I glad im not an american...
 do you think this stops americans fromw orking abroad?
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Probably not, but it does increase the amount of work done "under the table."  Actually here in Mexico it's difficult to obtain a work visa.  Most expats have a standard visa that specifically state you're not allowed to work. 
You are allowed to deduct all taxes paid in a foreign country from your federal tax.  I tried that the first year and it didn't go so well.  Even with receipts my accountant couldn't get them all approved.  If I didn't use a debit or credit card my name wasn't on the receipt.  So unless it's a big ticket item I don't even try now.