[ERJCaptain]

What is really ridiculous about the US tax code is that if I live and work in another country, I am still taxed by good ol’ Uncle Sam! That means I am paying income taxes in the US and the country in which I am living and working. Fantastic.

[Tainan]

Taxes in country of residence - yes.
Taxes paid to the IRS is after a certain dollar amount is reached;currently in the US72,000 range. No taxes until after that amount of earned income.
The usual deductions apply.
It used to be much higher - in the US$110,000 or so range. Standard avoidance method, and very legal, was to have wages deposited into a outside the country bank that had either branches in the US or had a reciprocal relationship with a US bank. Thus, the monies were not 'technically' brought into the US. But checks could still be written and credit cards were good to go.
Alas...the good old days......;)