Do we get a tax break after living for an extended time in a foreign country? How?

It's easy to confuse state citizenship with USA citizenship. A USA citizen remains a USA citizen regardless of where they live. You cease to be a state citizen when you move out of the state. If you move out of state in July, you'll have to file a part year income tax return on the income you earned while living there but you're not liable for taxes on the income you earned after you left (except California, which has a penalty on part year residents using a complex calculation). As a USA citizen living and working in a foreign country, you MUST file Form 8938 reporting foreign bank accounts. If you don't the penalties are EXTREME. With their typical bungling, Congress enacted a law to catch drug dealers, Hillary and other felons who hide their wealth in foreign countries but forgot that many law abiding USA citizens live and work abroad, maintaining normal, legal pension funds and bank accounts.

You can earn up to about $75,000 per year abroad while living abroad and exclude it form U.S. income, provided that you file your return and report it on the appropriate form. U.S. source income or unearned income is fully taxable.