How will my assignment allowances affect my taxes?
Any assignment related allowances reimbursed to you or paid on your behalf are considered taxable income to you. These reimbursements may include:
Will I still have federal and state withholding?
Your US employer will be required to withhold taxes on your wages, even if you are working abroad. However, your US employer may be able to claim an exemption from federal income tax withholding on wages earned abroad if certain circumstances are met.
If you are considered a resident of your home state, the state tax withholding will continue.