3 ms·
You're right about the US being one of the few countries in the world that still tax citizens and permanent residents no matter where they are in the world. You
by otoburb 9y ago
You're right about the US being one of the few countries in the world that still tax citizens and permanent residents no matter where they are in the world. You are also correct you should get some tax accounting advice to file your US taxes[]. Having said that, the US provides two mechanisms to offset US taxes when you are living abroad:
1) For single income earners, the first ~$100K is exempt or "non-reportable", known as the Foreign Earned Income Exclusion[1].
2) US tax treaties with other countries help to offset. Thus, if a US citizen/resident pays a lot of taxes in another country that would exceed or equal their amount in the US, provided the country has a reciprocal tax treaty, the person should not need to pay additional tax to the IRS[2].
Note that while this applies to US permanent residents too, there are immigration consequences if one lives abroad without the appropriate paperwork/authorization.[]
[*] Disclaimer: I'm neither a lawyer nor an accountant. Please consult at least the latter for your taxes.
[1] https://www.irs.gov/individuals/international-taxpayers/figuring-the-foreign-earned-income-exclusion https://www.irs.gov/individuals/international-taxpayers/figu...
[2] https://www.irs.gov/individuals/international-taxpayers/tax-treaty-tables https://www.irs.gov/individuals/international-taxpayers/tax-...
- Chris2048 9y agoI'm a bit annoyed about this. European forms always ask about the US, even if there's no reason to suspect I've ever been a US citizen - I assume this is purely because America has the pull?
- nvarsj 9y ago> 1) For single income earners, the first ~$100K is exempt or "non-reportable", known as the Foreign Earned Income Exclusion[1]. This is great, until you want to start a business or something similar. Then you enter the 9 circles of IRS hell.