“Many of our dedicated civil servants answer a ‘call to duty’ that takes them away from their families and exposes them to imminent danger to life and limb,” said National Active and Retired Federal Employees Association President Joseph Beaudoin in a statement. “They may not wear uniforms, but they often stand shoulder to shoulder amidst hostile fire with those who do.”

Under the combat zone tax credit, an enlisted service member’s pay for time in combat is exempt from federal income taxes. For commissioned officers, the amount of pay excluded is capped at the highest enlisted pay level, plus any hostile or imminent danger pay received. Federal contractors also can qualify for certain tax credits, though not under the same provision. Contractors and other non-federal employee U.S. citizens living and working overseas have to pay foreign taxes and are eligible for federal income tax exemptions in the United States, including a foreign earned income exclusion of more than $97,000 — a benefit not available to federal workers serving abroad in combat or non-combat zones. Federal employees do not have to pay foreign taxes.

Three Virginia lawmakers are co-sponsoring the legislation: Republicans Rob Wittman and Frank Wolf, and Democrat Gerry Connolly. Similar legislation has been introduced in previous Congresses, but has never made it out of committee.

For example, if you're going to accept a job overseas for the summer months, you might be able to sublet your residence for a short period. However, if you accept a two-year expat assignment, consider a longer-term solution to what you'll do with your home while you're out of the country.

Compensation

Many organizations with overseas locations provide additional compensation to employees who accept expatriate assignments. The money helps you adjust to a new country, which includes settling into a new home, learning a new language, navigating your way through the region and finding suitable schools for your children. They will also pay for your relocation expenses, as well as travel expenses for you and possibly money for house-hunting trips. You'll need to know what amount of compensation you're entitled to in addition to your salary. If you're accepting a job overseas, you need to know your salary, the cost of living and whether the salary you're offered is enough to maintain your standard of living. Also, you need to be aware of your tax liability for income earned in the U.S. vs. overseas.

Work Authorization

Before you earn a dime in the host country, you'll need authorization to work overseas. If you've found employment with an overseas company, you must determine whether your prospective employer will assist you in obtaining a work visa. During the process of learning how to obtain a visa, you should also verify that your job opportunity is a legitimate one. If your spouse or partner intends to work, you also need to know if a spousal visa is permitted or available. U.S. employers that send employees on expatriate assignments assume responsibility for their employees' visas and work authorizations, as well as spousal visas, depending on the host country's labor regulations.

Health

Having an illness in a country far away from home can be scary if you're not familiar with the availability of medical treatment and health care in your host country. Sort out any health insurance issues -- check the limitations of your current medical coverage or consider purchasing health insurance specifically for foreign travel and long-term overseas stays. Ensure you are fully covered or that you can access health care while living abroad.

Cultural Assimilation

Moving to a new country requires assimilation into a new culture, which can be difficult for some employees, based on the length of the assignment and perhaps the reason for the overseas assignment. Even if your employer pays living expenses and offers additional compensation to make the adjustment easier, you still need to know if your company provides a support system once you accept the overseas job. If you've found overseas employment on your own, you may be left to your own devices to transition into a new culture without much assistance from your new employer.

Coming Home

Returning to the U.S. after a lengthy stay abroad requires repatriation, the process of assimilating back into your home culture. Depending on the extent to which you embraced your host country's culture, repatriation could take time and assistance from your employer, family and friends. Repatriation completes the cycle of expatriation, which is important to the overall experience of working and living abroad.