Working Abroad, Paying Uncle Sam

Question:
I'm an American living in Poland (beautiful country!) where I work for a Polish import-export company. Do I have to pay income taxes on my earnings?

Answer:
I'm sorry to give you such an indefinite answer, but my response has to be, "It depends." The rule is that a U.S. citizen or permanent resident is generally subject to U.S. tax on total worldwide income. However, if you are a citizen or resident alien who lives and works abroad, you might qualify to exclude all or part of your foreign earned income. If you are a United States citizen with a tax home in a foreign country and you meet the bona fide residence test or physical presence test, you may exclude up to the maximum limit allowed for the taxable year. Resident aliens of the United States with a tax home in a foreign country may be eligible for the exclusion if they meet the physical presence test.

The physical presence test can be used by any United States citizen or resident alien. You must be physically present in a foreign country or countries for at least 330 full days during any period of 12 consecutive months. The 12–month period can begin with any day of any calendar month.
If you violate U.S. restrictions that prohibit travel to certain countries, you will not be able to count your presence or residence in those countries in meeting the bona fide residence test or the physical presence test.

Confused? Be sure to consult a professional tax consultant.