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You're not double-taxed as a US citizen abroad. You pay the higher of the two taxes. And you don't pay US taxes on the first 100k of income.
by function_seven 11y ago
You're not double-taxed as a US citizen abroad. You pay the higher of the two taxes. And you don't pay US taxes on the first 100k of income.
- tremon 11y agoHow does that work? If your local taxes are more than what the US would take, they take nothing? And if the US taxes are higher, the US only receives the surplus amount?
- function_seven 11y agoLink below explains it better. I'm sure it's as complicated as the IRS can make it, and I'm sure there are situations where some of your income is double-taxed, but for most people, you choose either a tax credit in the amount of foreign taxes paid, or you get to exclude 100k of your income right off the bat. http://www.nolo.com/legal-encyclopedia/when-us-citizens-living-abroad-owe-us-tax.html http://www.nolo.com/legal-encyclopedia/when-us-citizens-livi...