Do I need to file and pay federal taxes if I work outside the US and I'm employed outside the US?

ANSWER

The BIDaWIZ Team's Answer:

If you are a US citizen, you must file an annual income return; unless

you are retired, and your taxable income is less than the

sum of your personal exemption, and the standard deduction amount

[i. e. for 2010 approximately $9,500 for a single individual]. You report

your foreign earned income, and any housing allowance, on Form 2555, of

your form 1040. The 2010 foreign earned income exclusion amount = $91,500.

In addition, you are also permitted a foreign housing exclusion that is also

computed on the form 2555.