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You pay the taxes of the country you're in, and also U.S. taxes. Now you have some write-offs, such as the Foreign Earned Income exemption and you can write of
by david927 17y ago
You pay the taxes of the country you're in, and also U.S. taxes. Now you have some write-offs, such as the Foreign Earned Income exemption and you can write off the resident country's taxes, but it's still expensive -- and going to services you're by definition not using.
- DougWebb 17y agoThere are also tax treaties with some countries that can reduce the burden. For example, as a NJ resident who works in NY I only pay taxes to the jurisdiction that wants more (which is NY) because of an agreement between the states. I'm pretty sure there is a similar agreement between the US and Canada, where the US gets the income tax while Canada gets all of the sales tax.
- jleyank 17y agoThere is a US/Canada arrangement. While I must file US taxes each year, I pay nothing - there is the Foreign Income exclusion, and there is also a foreign tax credit. So, unless you live in a country with lower taxes than the US you end up with no net tax.