I work for military outside of US. I am there more than 330 days, what is the tax deduction implication

Since you are not a US government employee and are just working for a US company contracting with the US government then you would be eligible to exclude all or part of your income from US taxes.

See this IRS website for the physical presence test - https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion-physical-pre...

You should also review IRS Publication 54 Tax Guide for U.S. Citizens and Resident Aliens Abroad - https://www.irs.gov/pub/irs-pdf/p54.pdf

The maximum Foreign Earned Income that can be excluded on your tax return is $101,300 (2016)

You will need to complete a Form 2555 to be included with your personal tax return, Form 1040.

Go to this IRS website for the Foreign Earned Income instructions for a Form 2555 - https://www.irs.gov/pub/irs-pdf/i2555.pdf

Using TurboTax -

To enter Foreign Earned Income -

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Less Common Income
• On Foreign Earned Income and Exclusion, click on the start or update button

Or enter foreign income in the Search/Find box located in the upper right of the program screen.  Click on Jump to foreign income