I'm a US citizen who lives and works in California. I've been looking at a possibility of working remotely and living abroad.

My understanding is that when it comes to state taxes, you pay income tax to the state of your residence, which in case of living abroad would be 0% (same as Nevada or Texas)

Does the FEIE affect income that's earned from a foreign employer or is it possible to earn that income from a US employer and still avoid taxes while living abroad?

Does the location of the employer matter?

The FEIE for 2019 appears to be $105,900. If I'm able to prove bona fide residence abroad, am I correct in that I would not have to pay income tax if I make $100,000?

Finally, how does this exclusion actually work? Are the taxes paid as usual (suppose the remote work is not a 1099 contractor) but then refunded at the end of the tax year, except in larger amount?



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