Link 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,

Link 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...