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As long as you are a US citizen you are expected to pay Federal income tax, no matter where you are in the world, and no matter where you earned it. The US and
by CapricornNoble 6y ago
As long as you are a US citizen you are expected to pay Federal income tax, no matter where you are in the world, and no matter where you earned it. The US and Eritrea are the only 2 countries on the planet with this policy. I think you can get your tax burden reduced if you can prove you've paid taxes to another jurisdiction, but don't quote me on that...
- komali2 6y agoYou're expected to report your income to the Fed but last time I worked abroad I didn't owe taxes cause I made under some number, I think it was 100k?
- pheug 6y agoAlso Hungary and Myanmar if wikipedia to be trusted https://en.wikipedia.org/wiki/International_taxation https://en.wikipedia.org/wiki/International_taxation And there are talks in the air that other countries might follow the suit to buff up their state coffers - https://nomadcapitalist.com/2020/05/12/citizenship-based-taxation-in-canada/ https://nomadcapitalist.com/2020/05/12/citizenship-based-tax...
- jcranmer 6y agoYou do get a foreign tax credit. There is also a foreign income inclusion that lets you avoid all taxes, but it comes with some severe restrictions (including not being in the US for more than ~30 days in any 365-day period).
- hopia 6y agoActually, I think Japan also technically taxes worldwide income of non-resident nationals. And even permanent residents, regardless of where they reside. Moreover, some countries like Finland require you to pay taxes on worldwide income for a number of years after you're no longer a resident of the country and only then granting you tax freedom from income sourced outside of the country. And there's no amount of income you can exclude like the USA's $108k or whatever the figure is currently.