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Conversely, earned income abroad, and a second income from foreign securities, rental, or everything else abroad, can be excluded from U.S. taxable income, or foreign taxes paid thereon, should be employed as credits against U.S. taxes due. Muni bonds should be owned in your taxable brokerage accounts, and kontol do not in your IRA or 401K accounts because income in those accounts is already tax-deferred.
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